Crypto Trading Volumes Plunge 20% in February Amid Trump Tariff Fears
Crypto traders hit the pause button last month, spooked by President Donald Trump’s tariff threats against big players like Mexico, Canada, and China. The worry that these trade walls could choke global commerce sent investors scurrying from risky bets like cryptocurrencies, and the numbers took a dive.
According to CoinDesk Data’s latest Exchange Review, combined spot and derivatives trading on centralized exchanges slumped 21% in February, landing at $7.2 trillion—the lowest since October. It’s the kind of drop that makes you sit up and wonder what’s brewing.
Since November, Trump’s team has been rattling sabers, vowing tariffs on countries they say aren’t playing fair with U.S. trade. From the European Union to China, the tough talk has folks rethinking their next moves. Crypto, with its rollercoaster reputation, caught the brunt of the hesitation.
The Leaders and the Losers
Binance kept its throne as the top spot trading platform, holding a solid 27% of the market. Right behind were Crypto.com at 8.1%, Bybit at 7.4%, and Coinbase and MEXC Global filling out the top five. But even the big dogs couldn’t dodge the slowdown.
Over in derivatives—where traders bet on crypto’s future prices—the Chicago Mercantile Exchange (CME) saw its first hiccup in five months. Volumes there fell 20% to $229 billion, with bitcoin futures down 20% to $175 billion and ether futures off 13% to $35.9 billion. Still, CME’s share of the derivatives market climbed to a record 4.67%. That’s a clue the Wall Street crowd isn’t running for the exits just yet.
Digging Into the Details
The retreat wasn’t limited to trading desks. Open interest—the pile of active crypto contracts—tumbled 30% to $78.8 billion, the leanest since early November. Traders cashed out hard, rattled by the uncertainty. Another sign of the times: the BTC CME annualized basis, a nerdy way of measuring futures returns, hit 4.08%, its lowest since March 2023.
Even retail platforms felt the sting. Robinhood, where everyday folks dabble in crypto, saw its trading volume crater 29% in February. Compare that to CME’s steady institutional hum, and you’ve got two different stories playing out—one skittish, one stubborn.
What’s Shaking Things Up?
It all circles back to those tariff threats. Trump’s warnings have painted a picture of a world where trade slows to a crawl, and that’s not a canvas crypto thrives on. It’s a young market, still finding its footing, and when the ground shakes, the risk-takers tend to scatter. But that uptick in CME’s market share? It’s a whisper that the big fish might see a chance to swim against the tide.
So, here we are—crypto’s catching its breath after a wild February. Whether it’s a stumble or a setup for a comeback depends on what Washington does next. For now, it’s a human story of nerves, numbers, and a market that’s tougher than it looks.