Crypto trading activity on centralized exchanges (CEXs) soared to an all-time high in December, coinciding with Bitcoin surpassing $100,000 for the first time and hitting a peak of $108,249 later in the month. Insights from crypto research firm CCData highlight December as a milestone month for both spot and derivatives trading volumes.
Record-Breaking Trading Volumes
In December, combined spot and derivatives trading volume on CEXs rose by 7.58%, reaching an unprecedented $11.3 trillion, according to CCData. Among the leading platforms, Binance recorded the highest spot trading volume at $946 billion, marking a modest 0.13% increase. Bybit followed with $247 billion, up 18.8%, while Coinbase reported $191 billion, a 9.62% rise.
On the derivatives side, trading volumes jumped by 7.33% to hit $7.58 trillion, setting a new record for the derivatives market. This marked the third consecutive monthly increase, driven by traders taking advantage of market volatility. CCData noted a spike in liquidations during the month as traders reacted to price swings.
Bitcoin Hits $100,000
December was a historic month for Bitcoin, which crossed the $100,000 mark on December 5 and later hit an all-time high of $108,249 on December 17. However, the market also experienced turbulence. On December 20, over $1 billion in liquidations occurred as Bitcoin’s price dipped 3.5% from the $100,000 level following comments from Federal Reserve Chair Jerome Powell about the lack of urgency to lower interest rates.
Rate Cuts Could Impact Crypto Markets
Looking ahead, the crypto market is closely monitoring the Federal Reserve’s first interest rate decision for 2025, scheduled for January 29. Optimism has grown for potential rate cuts after the US Consumer Price Index (CPI) report on January 15 showed lower-than-expected core inflation in December. This report triggered a Bitcoin price rally, pushing it from $96,000 to $100,522.
The next steps from the Federal Reserve could play a pivotal role in determining the trajectory of the crypto market in the coming months.
