A recent phenomenon has been particularly eye-catching—the trading volume in the December crypto market has shrunk significantly. What exactly is happening? Is the market heading into winter or brewing the next wave of momentum?

**Data is in front of us**

December's trading volume dropped 32% compared to November, and compared to the October peak, it was halved by 49%. Although leading exchanges still maintained a trading scale of $367.35 billion, continuing to lead, the absolute figures have already shrunk noticeably. DEXs are not doing much better; total trading volume in December fell to $245 billion, a 46% decrease from October.

Volatility has also waned. Mainstream assets like Bitcoin have been stuck in a long consolidation between $80,000 and $90,000, and the market is eerily quiet.

**Why is this happening?**

First, macro-level pressures. Geopolitical uncertainties have intensified, risk-averse sentiment is spreading, and many funds are simply withdrawing from high-risk crypto assets, shifting into cash or traditional assets. This is a typical defensive move.

Second, the sharp decline in early December left lingering effects. Bitcoin once plunged below $86,000, triggering a chain reaction—high-leverage retail traders were forced to liquidate, deleveraging accelerated, and market activity plummeted.

Additionally, seasonal factors play a role. After early 2025 gains, many long-term holders chose to lock in profits at year-end. Coupled with the approaching Christmas and New Year holidays, Western institutional traders are noticeably less active, order book depth has shallow, and overall market trading enthusiasm is harder to ignite.

**What’s next?**

The key question is: is this the end of the "bull market" or a "slow bull pause"?

From a deeper perspective, 2025 marks a watershed year for cryptocurrencies transitioning into mainstream compliance. The decline in trading volume may precisely indicate that the market is restructuring—from retail speculation-driven to institutional allocation-driven, which is a sign of maturation.

In simple terms: the sharp drop in December trading volume may not necessarily be bad. Rather than saying the market has collapsed, it’s more the result of multiple pressures and seasonal cycles stacking up. For investors, this "cooling-off period" might be a good window to assess market changes and identify opportunities for the next phase.