Bitcoin Price Rally Hides Low Liquidity as Spot Trading Volume Hits 12-Month Low

The recent surge in Bitcoin's price is concealing a critical weakness in the market: fragile liquidity. Despite the bullish momentum, data reveals that spot trading volumes for BTC have plummeted to their lowest levels in a year. This divergence indicates that the current rally may be built on shaky foundations, with thin order books potentially leading to heightened volatility. Analysts caution that low spot volume often precedes significant price corrections, as it reflects a lack of broad market participation and conviction. While derivatives trading remains active, the stark drop in real asset trading raises concerns about the sustainability of the uptrend. Market participants are advised to monitor liquidity metrics closely, as a price move against low-volume support could trigger sharp swings.