TL;DR
- December 2024 saw record-breaking trading volumes on centralized crypto exchanges, with combined spot and derivatives trading reaching an all-time high of $11.3 trillion.
- Binance led spot trading with $946 billion in volume, while crypto derivatives trading surged to $7.58 trillion.
- Despite a $1 billion liquidation following Federal Reserve comments, the market outlook improved in January with lower-than-expected core inflation.
December 2024 marked a historic milestone for CEXs, achieving the highest combined spot and derivatives trading volumes ever recorded. According to CCData’s latest market report, the combined trading activity surged by 7.58%, reaching an all-time high of $11.3 trillion. This remarkable increase underscores the growing adoption and investor confidence in the crypto market.
Binance Leads the Pack
Binance retained its dominance in spot trading, registering $946 billion in volume, a slight 0.13% rise from the previous month. Bybit and Coinbase followed, with $247 billion (up 18.8%) and $191 billion (up 9.62%), respectively. The surge in trading volumes was driven by a combination of factors, including market volatility and increased investor interest in digital assets.
Crypto Derivatives Trading Surges
Crypto derivatives trading also saw a significant uptick, climbing 7.33% to $7.58 trillion, the highest monthly volume in derivatives history. CCData observed a surge in liquidations as traders aimed to take advantage of the market’s fluctuations. December’s trading frenzy coincided with Bitcoin’s historic climb, surpassing $100,000 for the first time on December 5 and peaking at $108,249 on December 17.
Market Volatility and Liquidations
However, the month also witnessed a sharp $1 billion liquidation on December 20, as Bitcoin fell 3.5% from its $100,000 level following Federal Reserve Chair Jerome Powell’s comments signaling no rush to lower interest rates. Market optimism was quickly tempered, with traders unprepared for the impact of Powell’s remarks, according to Swyftx analyst Pav Hundal.
Bright Market Outlook
The market outlook turned brighter in January, as the U.S. Consumer Price Index report showed lower-than-expected core inflation for December, boosting prospects for interest rate cuts. Bitcoin rallied in response, recovering from $96,000 to $100,522.
With the Federal Reserve’s first interest rate decision for 2025 scheduled for January 29, traders are closely watching for further developments that could shape the market’s trajectory.
Bitcoin Network’s Impressive Performance
The Bitcoin network finalized over $19 trillion in transactions in 2024, more than doubling the $8.7 trillion settled in 2023. This surge marks a significant reversal following two years of declining transaction volumes since 2021.
The U.S. also consolidated its dominance in Bitcoin mining by the end of 2024, controlling more than 40% of the world’s Bitcoin hashrate. December 2024 will be remembered as a landmark month for the crypto market, setting new records and highlighting the dynamic and rapidly evolving nature of digital assets.
