Crypto Market Activity Slumps 20% in February as Tariff Fears Weigh on Traders.

Crypto Trading Volumes Sink in February as Investors React to Tariff Concerns

Cryptocurrency trading activity plummeted last month, as uncertainty surrounding U.S. tariffs on key trading partners led to a risk-off sentiment in global markets.

According to CoinDesk Data’s latest Exchange Review, total spot and derivatives trading volume across centralized exchanges dropped by 21% to $7.2 trillion, marking the lowest level since October 2024.

Macroeconomic Tensions Push Investors to Sidelines

The decline comes as the Trump administration signals potential tariffs on Mexico, Canada, China, and the European Union, raising concerns about economic stability. This uncertainty dampened investor appetite for speculative assets, including cryptocurrencies.

Binance Retains Market Leadership Amid Slowdown

Despite the broad decline, Binance remained the dominant player in spot trading, holding a 27% market share. Other major exchanges, including Crypto.com (8.1%), Bybit (7.4%), Coinbase, and MEXC Global, also saw declining volumes.

Derivatives Trading Declines, CME Sees First Drop in Five Months

The derivatives market was not spared from the downturn, with CME—one of the largest institutional crypto trading platforms—recording a notable dip:

Total CME crypto derivatives volume fell 20% to $229 billion
Bitcoin (BTC) futures trading dropped 20% to $175 billion
Ether (ETH) futures trading slid 13% to $35.9 billion

Additionally, the BTC CME annualized basis fell to 4.08%, the lowest since March 2023. However, despite the drop in volumes, CME’s market share in crypto derivatives rose to a record 4.67%, signaling ongoing institutional interest.

Retail Participation Declines, Open Interest Hits Lowest Since November

Retail trading activity weakened significantly, with Robinhood (HOOD) reporting a 29% drop in crypto trading volume for February. Meanwhile, total open interest across all centralized exchanges fell 30% to $78.8 billion, reaching its lowest level since November 2024, indicating heavy liquidations amid market drawdowns.

As macroeconomic pressures persist, crypto markets may remain volatile, with trading volumes likely to recover only when regulatory and economic clarity improve.