Bitcoin's recent price surge is overshadowed by concerns over market liquidity, as spot trading volume for Bitcoin and altcoins has dropped to its lowest level since November 2023. According to Glassnode data, this decline in trading activity suggests weak market participation and fragile demand, despite ongoing price increases. The market has struggled to recover its depth following a $19 billion liquidation event in October 2025. This fragile liquidity environment makes Bitcoin prices more vulnerable to significant movements from relatively small transactions, highlighting the current instability in the market.