Bitcoin and altcoin prices have risen in early 2026, but underlying market liquidity remains weak, according to on-chain analytics firm Glassnode. The trend echoes concerns raised in a November CoinDesk report following October’s crypto crash.

Glassnode data shows that both bitcoin spot trading volume and total altcoin spot volume have dropped to their lowest levels since November 2023, even as prices climbed. Spot volume, which measures actual buying and selling activity on exchanges, is a key indicator of real market participation and demand.

Typically, strong price gains are accompanied by rising volumes as fresh buyers enter the market. In this case, however, the rally is occurring on shrinking spot volumes, highlighting thin participation and fragile demand beneath the price moves.

CoinDesk research noted that after the October liquidation cascade — which wiped out $19 billion in leveraged positions — order-book depth on centralized exchanges remained structurally lower. Reduced liquidity from market makers and providers has left markets more vulnerable to sharp swings.

Bitcoin is currently trading around $93,500, up roughly 7.5% since Jan. 1, but the advance on minimal volume presents warning signs for traders, with thin liquidity increasing the potential for exaggerated price moves