Crypto market cools amid Bitcoin consolidation
Despite reduced trading volumes and liquidations, investor optimism remains high, with total open interest increasing to $104 billion.
Bitcoin’s consolidation near the $90,000 mark has steadied the broader cryptocurrency market, with trading volumes on centralised exchanges significantly declining. Binance, the largest crypto exchange, reported a 15.2% drop in daily trading volumes, while other major platforms like Bybit and OKX saw declines of 14.6% and 18%, respectively, according to CoinGecko. Activity on decentralised exchanges also dipped by 4% to $9 billion.
The market-wide cooldown comes as leading cryptocurrencies such as Ethereum, BNB, and Toncoin enter overbought territory. Analysts view this consolidation as a normal profit-taking phase, with long-term and short-term investors responding to recent price gains. Meanwhile, total crypto liquidations have dropped sharply from $869 million on 12 November to $231 million, signalling reduced sell-offs across the market.
Despite these trends, investor optimism remains high, with a 1.5% increase in total open interest reaching $104 billion. Market participants anticipate heightened volatility as Bitcoin’s dominance, currently at 56.2%, continues to influence broader market movements. Bitcoin’s next move could determine the trajectory of the entire cryptocurrency sector.