February Sees 20% Drop in Crypto Trading Activity Amid Rising Tariff Concerns.

Crypto Trading Volumes Sink to Four-Month Low Amid Global Trade Concerns

February saw a steep decline in cryptocurrency trading volumes, as mounting fears over potential tariffs from the Trump administration dampened investor appetite for risk assets.

Total spot and derivatives trading volume on centralized exchanges fell 21% to $7.2 trillion, marking the lowest activity level since October, according to CoinDesk Data’s latest Exchange Review.

Macroeconomic Uncertainty Cools Market Participation

Investors pulled back amid uncertainty surrounding new tariff threats targeting Mexico, Canada, China, and the European Union. These geopolitical tensions have sparked concerns over global trade disruptions, pushing traders to reduce exposure to volatile assets like cryptocurrencies.

Major Crypto Exchanges See Mixed Performance

Despite the market slowdown, Binance continued to dominate with a 27% market share, followed by Crypto.com (8.1%), Bybit (7.4%), and Coinbase (COIN) and MEXC Global rounding out the top five.

Derivatives Trading Sees First Drop in Five Months

The downturn extended to derivatives markets, with CME—the largest institutional crypto trading platform—recording a sharp volume decline:

• Total CME trading volume shrank 20% to $229 billion
• Bitcoin futures activity fell 20% to $175 billion
• Ether futures volume dropped 13% to $35.9 billion

At the same time, the BTC CME annualized basis hit 4.08%, its lowest level since March 2023. However, CME’s overall market share climbed to a record 4.67%, suggesting that institutional interest remains resilient despite retail pullback.

Retail Trading Cools as Liquidations Surge

Retail participation showed signs of weakness, with Robinhood (HOOD) reporting a 29% drop in crypto trading volumes in February. Meanwhile, market-wide liquidations surged, contributing to a 30% decline in total open interest across centralized exchanges, which now stands at $78.8 billion—the lowest since Nov. 5.

With macroeconomic risks clouding the outlook, crypto traders remain cautious, leading to muted activity across both spot and derivatives markets.