Spot trading activity on centralized exchanges (CEXs) has fallen to October 2020 levels, according to CryptoQuant analyst Axel Adler Jr.
The sharp drop reflects a change in sentiment among crypto investors, who prefer to hold their assets rather than actively trade them.
According to Hyblock Capital, order book data shows a growing bearish bias. The bid-ask ratio has turned negative on spot, perpetual futures and combined exchange platforms, with more sellers placing limit orders near the current price.
Historically, this pattern has preceded local highs and short-term declines in the price of Bitcoin.
The key factor in the decline in CEX volumes has been investor risk aversion. After a series of shocks, including the collapse of FTX in 2022 and a regulatory crackdown on Binance and Coinbase in 2023, traders have become more cautious.
At the same time, decentralized exchanges are growing: in May 2025, DEXs achieved a record 25% share of global spot trading volume, up from 20% at the start of the year. This jump was driven by both improved wallet usability and growing dissatisfaction with centralized platforms.
Additionally, composable trading environments have made DEXs more attractive to experienced users.
Analysts believe that this “regime HODL» is unlikely to change without a significant shift in sentiment or strong market catalysts.
