Bitcoin Spot Volumes on Centralized Exchanges Hit 2020 Lows Amid HODL Trend and Market Consolidation

Bitcoin’s spot trading volume on centralized exchanges (CEXs) has dropped to its lowest level since October 2020, according to new CryptoQuant data, signaling a significant shift in investor behavior. The decline in CEX volumes aligns with a pronounced ’HODL mode’, as traders show increased risk aversion and prefer holding Bitcoin rather than actively trading. The market recently experienced heightened volatility due to a public dispute between tech leaders and economic uncertainties, but despite a swift price recovery following a sharp dip, overall sentiment remains cautious. Bitcoin is currently consolidating near major resistance levels, just 6% below its record high of $112,000, after rebounding over 50% since the April lows. Technical indicators show bullish momentum with BTC reclaiming critical moving averages (34-day EMA at $103,683; 50-day SMA at $101,906; 100-day SMA at $93,053). However, the subdued spot volume indicates traders are waiting for a decisive move above $109,300 resistance before committing to new positions. Should Bitcoin break this level, further upside may follow; failure could result in continued price consolidation. Decentralized exchanges (DEXs) have gained market share, now capturing a record 25% of global spot volume, reflecting growing dissatisfaction with CEXs and improved user experience in decentralized trading. Traders are advised to closely monitor spot volume and key resistance zones as caution dominates the current landscape, with experienced users moving increasingly toward DEXs and cold storage.