The slowdown in trading activity across U.S. markets reflects a shift in the types of investors influencing cryptocurrency prices, according to digital asset brokerage FalconX.
David Lawant, Head of Research at FalconX, noted in a report shared with CoinDesk that the current dynamics may suggest growing participation from international investors or a pivot by U.S. traders toward crypto products beyond just spot trading.
Changing Market Volumes
Bitcoin ($BTC ), Ethereum ($ETH ), and Solana ($SOL ) have all experienced notable price increases over recent weeks. Since dipping below $75,000 in early April, Bitcoin has jumped by 40% to reach $105,000, while Ethereum and Solana have surged by 87% and 68%, respectively, based on CoinDesk data.
Despite these price gains, overall trading activity in the spot market hasn’t bounced back to the highs seen earlier this year. FalconX data shows that daily spot market volume for Bitcoin, which was averaging more than $15 billion on a 30-day basis following the November election, dropped during April’s sell-off and has since remained under $10 billion.
ETF Demand Bolsters Rally
Typically, a rally with declining trading volume is considered a warning sign of a potential price reversal or "bear trap." However, this rally appears to be driven by a different dynamic—growing interest in spot Bitcoin exchange-traded funds (ETFs).
FalconX reports that U.S.-listed spot Bitcoin ETFs now account for around 45% of total global spot BTC trading volume, up from just 25% in less than two months. This increase is largely attributed to speculative investments rather than traditional arbitrage strategies like "cash and carry" trades.
Since their launch in January 2024, the 11 spot ETFs have brought in $44 billion in net inflows. BlackRock’s IBIT alone pulled in $6.35 billion in May, its highest monthly total since January 2025. This suggests rising institutional interest, driven by broader economic uncertainty including trade issues and volatility in the bond market.
Lawant concluded, “The data indicates there’s still plenty of room for growth. Spot ETFs are likely to remain a key driver in sustaining this market momentum
