Crypto Trading Volume on Centralized Exchanges Hits Record High in December

December 2024 saw an unprecedented surge in crypto trading on centralized exchanges, setting a new record for both spot and derivatives trading volumes. According to data from crypto research firm CCData, the combined volume for spot and derivatives trading reached an all-time high of $11.3 trillion, marking a 7.58% increase over the previous month.

Record-Breaking Trading Activity

The surge in trading volume coincided with a historic month for Bitcoin, which hit the $100,000 milestone for the first time on December 5, before peaking at an all-time high of $108,249 on December 17. As crypto market activity surged, centralized exchanges saw a corresponding spike in trading volumes, fueled by increased investor interest and market volatility.

CCData’s January 15 report revealed that December’s total trading volume for spot and derivatives markets on centralized exchanges exceeded previous records, with derivatives trading alone accounting for $7.58 trillion, a 7.33% increase from the prior month. This marked the third consecutive month of rising derivatives volumes, driven by heightened volatility and liquidations as traders sought to capitalize on price fluctuations.

Leading Exchanges and Performance

Among the major centralized exchanges, Binance led the way with the highest spot trading volume in December, clocking in at $946 billion, a modest 0.13% increase from the previous month. Bybit followed with $247 billion in spot trading volume, reflecting a substantial 18.8% rise. Coinbase rounded out the top three with $191 billion in spot trading, a 9.62% increase.

Crypto derivatives trading, particularly, was a focal point of market activity, with traders looking to profit from Bitcoin’s volatility. The continued rise in derivatives volumes reflects a trend of traders capitalizing on both upward and downward market movements, with significant liquidations during periods of heightened volatility.

A Month of Highs and Lows

The crypto market’s remarkable performance in December was tempered by significant volatility. On December 20, Bitcoin’s price retraced almost 3.5%, dipping below the $100,000 mark, leading to over $1 billion in liquidations within a 24-hour period. This sharp correction followed comments by U.S. Federal Reserve Chairman Jerome Powell, who indicated that the economy was not signaling a need for immediate rate cuts. Optimistic market participants were caught off guard by the announcement, as many had been betting on a more dovish stance from the Fed.

Swyftx lead analyst Pav Hundal pointed out at the time that investors were unprepared for the negative news, highlighting how quickly market sentiment can shift.

Looking Ahead: Eyes on the Fed’s Next Move

As the first Federal Reserve interest rate decision of 2025 approaches on January 29, the crypto market remains on edge, with expectations for potential rate cuts rising following the release of the U.S. Consumer Price Index (CPI) report on January 15. The CPI data showed lower-than-expected core inflation in December, which has fueled speculation that the Fed may soon adjust its monetary policy to support economic growth.

The positive inflation data triggered a rally in Bitcoin’s price, pushing it from around $96,000 to just over $100,500. As Bitcoin revisits the $100,000 level, all eyes are on the Fed’s upcoming decision, which could have a significant impact on market sentiment and trading activity in the coming months.

Conclusion

December 2024 was a landmark month for cryptocurrency trading, with centralized exchanges reaching new heights in both spot and derivatives volumes. The record trading activity coincided with Bitcoin’s historic rise above $100,000, though market volatility and significant liquidations underscored the risks involved. As the crypto market continues to evolve, the Federal Reserve’s decisions on interest rates will remain a key factor in shaping future market dynamics.