Bitcoin's price surge to over $94,000 in early 2026 is occurring against a backdrop of alarmingly weak market liquidity, according to on-chain analytics firm Glassnode. Despite BTC gaining 7.5% since January 1 and hitting a year-to-date peak of $94,026, both Bitcoin and aggregate altcoin spot trading volumes have plunged to their lowest levels since November 2023.
This divergence between rising prices and falling volumes is a classic warning sign of thinning market participation and fragile underlying demand. Spot volume, which measures actual buying and selling activity on exchanges, is a key barometer of real trading interest. Healthy price advances are typically supported by rising volumes as fresh capital enters the market. The current scenario, where volumes have fallen to year-long lows while prices climb, suggests a lack of broad participation behind the moves.
The issue echoes concerns raised in a CoinDesk analysis from November 2025, which documented how liquidity across centralized exchanges—including Bitcoin and Ether market depth—failed to recover fully after the October liquidation cascade. That event wiped out $19 billion in leveraged positions in hours, leading to a sustained pullback in resting liquidity as market-making firms and liquidity providers retreated.
Analysts are divided on the short-term outlook. Trader Max Rager noted Bitcoin is "retesting the 2025 yearly open" at $93,500 and sees potential for a push back over $100,000 if it holds above $94,000. Analyst Michaël van de Poppe expects a "clear-cut breakout" within the coming week. However, commentators like Exitpump warn that continuation "will depend on spot buyers," while trader Roman cautions that "low volume pumps from holidays get completely retraced."
Bitcoin OG Willy Woo offered a mixed perspective, suggesting a short-term pump for January is likely as liquidity puts in a local bottom, but warned that transaction and fee data looks "long term (macro cycle) bearish, it's a ghost town out there." Glassnode reiterated the warning, stating that "weakening demand contrasts sharply with upside moves across the market, highlighting increasingly thin liquidity conditions behind recent price strength."
