June 9, 2025 – Centralized exchanges (CEXs) like Binance, Coinbase, and Kraken are experiencing their lowest spot trading volumes since 2020, signaling a major behavioral shift in the crypto space. According to CryptoQuant analyst Axel Adler Jr, investors are increasingly ditching active trading in favor of long-term holding, cold storage, and decentralized exchanges (DEXs).
The market isn’t dying—it’s evolving. Welcome to the new age of HODL.
🔍 Why Are CEX Volumes Crashing?
🛑 1. Investors Are Playing It Safe
Crypto traders are pulling back from the high-risk, high-reward trading frenzy. Key signals include:
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Reduced on-chain activity—fewer coins being moved or sold.
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Exchange withdrawals of major assets like BTC and ETH are rising.
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The scars of past collapses (FTX, Celsius) and regulatory clampdowns on Binance and Coinbase are still fresh.
The result? A risk-off environment where safety and sovereignty matter more than speculation.
⚖️ 2. Macro & Political Uncertainty Adds Pressure
A very public spat between Elon Musk and Donald Trump recently rattled both tech and crypto markets:
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Tesla stock took a nosedive.
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Bitcoin dropped 5% before bouncing back.
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Investors are on edge, fearing regulatory shifts or policy disruptions that could impact crypto in the U.S.
With the US Non-Farm Payrolls report looming, traders are holding back and watching from the sidelines.
📉 3. Sell-Side Pressure Is Building
Even with short-term recoveries, the market isn’t out of the woods.
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Hyblock Capital data shows a negative bid-ask ratio across major exchanges.
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Sell orders are outpacing buy orders near current prices.
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This imbalance often signals a local top or short-term retracement.
Without a fresh catalyst, markets may remain sluggish or dip further before gaining new momentum.
🔄 The Rise of DEXs & Self-Custody
While CEXs struggle, DEXs are thriving:
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In May 2025, DEXs captured 25% of global crypto spot volume, up from 20% earlier this year.
What’s driving this shift?
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Improved wallet interfaces—no more clunky tools or complicated onboarding.
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Loss of trust in CEXs, especially post-FTX and amid increasing regulation.
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DeFi integrations that offer traders more flexibility and functionality.
For many, DEXs offer what CEXs can't: true control, permissionless access, and transparency.
🧠 What’s Next for Crypto Markets?
The market is clearly entering a cooldown phase, but there are levels and signals to watch:
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Bitcoin’s key support zone: ~$107,000
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If bearish pressure grows, we may see a short-term dip before the next major move.
What could break the HODL cycle?
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Institutional ETF inflows
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A Federal Reserve pivot
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Renewed institutional adoption
Until then, expect a quieter, more mature market—one that prioritizes security, strategy, and long-term belief.
✅ The Bottom Line
Crypto trading isn’t dead—it’s maturing.
The crash in CEX volumes reflects:
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A shift toward long-term holding
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A growing preference for DEXs and self-custody
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A pause in short-term speculation
This evolving behavior could be the foundation for a stronger, more resilient bull run—one built not on hype, but on conviction.
Stay tuned as we continue to track this new chapter in crypto’s journey. 🚀
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