Altcoin Buying Momentum Weakens as Spot Volume Slumps, Curbing Rally

Buying momentum in the altcoin market is weakening, with falling spot trading volume cited as a key reason the rally is losing steam. If liquidity keeps shrinking, the scope for a broad rebound may remain limited.

On Oct. 7, crypto research firm BIT, formerly Matrixport, wrote on X that altcoin buying momentum is weakening alongside declining trading volume.

Its data showed average daily spot crypto trading volume dropped to $26.6 billion in October 2025 from $41 billion in December 2024. Over the past 30 days, that figure has fallen to about $8 billion. The trend points to both lower market participation and weaker risk appetite.

Spot trading volume is a key leading indicator of altcoin performance because it reflects both capital inflows and investor sentiment. When volume declines, price moves tend to slow and gains across the broader market become more limited.

BIT said the current drop in trading volume helps explain weakness across the altcoin market, sluggish price action and worsening investor sentiment.

It added that a sustained altcoin rally would require a meaningful recovery in volume. Without a clear catalyst, the chances of a broader market upswing resuming are limited.

Trading volume is also becoming concentrated in a small number of tokens rather than the market as a whole. That suggests capital is flowing into select tokens even as opportunities across the broader market narrow.