December marked a record-breaking month for trading activity in cryptocurrencies, with centralized exchanges reporting unprecedented volumes in both spot and derivatives trading. Data from a recent market analysis indicates that combined trading for December reached a staggering 11.3 trillion, reflecting an increase of 7.58%. This surge represents the highest level of digital asset trading activity recorded on centralized platforms.
Among the primary exchanges, Binance maintained its dominance, leading the way in spot trading with $946 billion, a modest increase of 0.13%. Following closely was Bybit, which experienced significant growth with a trading volume of $247 billion, a remarkable 18.8% rise. Coinbase also reported healthy activity with $191 billion, marking a 9.62% increase for the month.
In terms of derivatives trading, December saw a 7.33% uptick, bringing the total volume to $7.58 trillion, solidifying it as an all-time high for this segment. The continuous rise in derivatives trading over the last three months indicates traders are keen to capitalize on market volatility, which has led to spikes in liquidations during this period.
The month was notable not only for trading volumes but also for Bitcoin ’s price action, which reached $100,000 for the first time on December 5, peaking at $108,249 by December 17. However, the crypto market faced a significant correction shortly after, with over $1 billion liquidated in just 24 hours on December 20, as Bitcoin ’s price retraced by approximately 3.5%. This volatility was exacerbated by economic signals from the Federal Reserve regarding interest rates.
As the market looks ahead, all eyes are on the forthcoming decisions from the Federal Reserve, especially following reports of lower-than-expected core inflation. This could influence the crypto market’s trajectory, as evidenced by the recent rally in Bitcoin ’s price from around $96,000 to $100,522.
