Crypto enthusiasts had a hectic month of December. Despite the legendary volatility of this market, the rise of bitcoin beyond $100,000 set the tone. According to the latest data from CCData, monthly trading on centralized exchanges (CEX) has reached new highs. A veritable whirlwind of activities which reveals the unprecedented enthusiasm of investors.
An impressive increase in spot and derivative volumes
The CCData figures reveal a clear trend: in December, the combined volume of spot and derivatives trading on CEXs climbed 7.58%, crossing the $11.3 trillion mark.
This meteoric rise confirms the growing interest in crypto as an asset class. Traders, whether novice or experienced, increasingly see this as an opportunity for diversification.
In the spot trading segment, Binance ranks first. Its transaction volume exceeds $946 billion, up slightly by 0.13%. Bybit proudly climbs into second position with $247 billion, recording a notable increase of 18.8%.
Right behind, Coinbase claims $191 billion, an increase of 9.62%. These performances reflect an intact appetite for spot trading, driven by the enthusiasm around bitcoin and other major cryptocurrencies.
Then, derivative products are not left out. They posted a record volume of $7.58 trillion, up 7.33%. This is the third consecutive monthly increase. Traders exploit market volatility to make quick gains, but also expose themselves to significant risks.
This intense dynamic fueled massive selloffs, particularly when prices briefly corrected after bitcoin's historic breakthrough.
Volatility, liquidations and outlook for 2025
December was also marked by an unexpected phenomenon: more than a billion dollars liquidated in just 24 hours.
This wave of liquidation occurred around December 20, when bitcoin was down about 3.5% since its peak at $100,000. The markets, surprised by the statements of Jerome Powell, Chairman of the Federal Reserve, quickly integrated the idea that interest rates could remain high for longer than expected.
However, the euphoria around crypto has not disappeared. Bitcoin eventually reached a new high, flirting with $108,249 on December 17, before stabilizing around $99,459 at the time of the report. CCData.
Optimistic investors believe that the underlying trend remains bullish, despite the short-term turbulence. The enthusiasm is also fueled by inflation which finally seems to be decelerating, after the report on the consumer price index on January 15.
Now, all eyes are on the Fed's next decision scheduled for January 29, 2025. If the US central bank decides to loosen its monetary policy, we could see an additional boost in demand for digital assets.
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