14-3-2025 – Trading activity in cryptocurrency markets plummeted in February as concerns grew over potential trade barriers proposed by the Trump administration. The spectre of tariffs targeting Mexico, Canada and other key trading partners has dampened investor enthusiasm for high-risk assets.
Institutional traders show resilience as retail investors retreat
Centralised exchanges recorded a combined spot and derivatives trading volume of $7.2 trillion, marking a 21% decline to levels not witnessed since October, according to CoinDesk’s analysis. This downturn occurred against a backdrop of growing unease about international commerce restrictions.
Despite the overall market contraction, institutional participation has demonstrated remarkable fortitude. CME Group, the premier institutional trading venue, achieved a record 4.67% market share among derivatives exchanges, even as its total volume decreased by 20% to $229 billion. This suggests professional investors are maintaining their positions while retail traders beat a hasty retreat.
Trade tensions cast shadow over risk appetite
The cryptocurrency landscape has grown increasingly cautious since November, when President Trump began warning of potential tariffs against China, the European Union and other trading partners. These proposed measures, intended to address perceived unfair trade practices, have substantially diminished appetite for speculative investments.
The BTC CME annualised basis fell to 4.08%, its lowest point since March 2023, whilst Robinhood reported a significant 29% reduction in cryptocurrency trading volume during February. Total open interest across all trading pairs on centralised platforms decreased by 30% to $78.8 billion, reaching lows not seen since early November as traders liquidated positions during the market drawdown.
Exchange hierarchy remains stable amid turmoil
Binance maintained its commanding position among centralised exchanges with 27% market share, followed by Crypto.com (8.1%), Bybit (7.4%), Coinbase and MEXC Global completing the top five positions. The derivatives segment experienced particularly sharp declines, with Bitcoin futures at CME falling 20% to $175 billion and Ether futures contracting by 13% to $35.9 billion.
