Bitcoin and altcoin prices have risen in early 2026, but market liquidity remains fragile, according to on-chain analytics firm Glassnode. The pattern reflects concerns highlighted in a CoinDesk report last November following October’s crypto crash.
Glassnode’s data shows both bitcoin spot trading volume and overall altcoin spot volume have fallen to their lowest levels since November 2023, even as prices climbed. Spot volume, which tracks actual buying and selling on exchanges, is widely regarded as a measure of real market participation and demand.
Healthy price rallies are usually supported by rising trading volumes as new buyers enter the market. In contrast, the current advance is occurring amid shrinking volumes, suggesting limited participation and a thin foundation beneath recent gains.
CoinDesk research noted that after the October liquidation cascade — which wiped out $19 billion in leveraged positions — order-book depth across exchanges remained structurally lower. Reduced liquidity from market-making firms and providers has left markets more vulnerable to sharp swings.
Bitcoin is trading around $93,500, up roughly 7.5% since Jan. 1, but the rally on minimal volume presents a cautionary signal, as shallow liquidity could amplify price volatility.
