Crypto market brutal deleveraging! Q2 spot trading volume plunges 42%, hitting a new low since 2023; the big focus in the second half is the U.S. “Clarity Act”

The cryptocurrency market is going through a deep “reset” underway! According to a report by the foreign media Crowdfund Insider, a latest report released by crypto firm FalconX indicates that in Q2 2026, spot trading volumes fell 42% year-over-year, while the stablecoin supply also saw a rare contraction—suggesting the market is in a strong deleveraging-and-bottom-building phase. However, analysts emphasized that as the speculative bubble and leverage are fully flushed out, market fundamentals have started to look healthier, as the industry waits for the third quarter’s legal and regulatory developments and the restart of institutional capital.

(Background: Bitcoin’s weekly chart suddenly shows a death cross! Analysts: A bull run could “strike” explosively in “September this year.”)
(Background supplement: Galaxy Research head: Long-term Bitcoin holders—four key indicators hit record highs across the board)

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• Speculation exits, leverage drops sharply, and spot trading volume hits the lowest level since 2023
• Bitcoin ETF sees net outflows of $4.9 billion, stablecoin supply contracts unusually
• Selective sector breakthroughs—Q3’s turning point centers on “CLARITY Act”

After the earlier frenzy, the cryptocurrency market is moving into a long but healthy phase of deleveraging and rebuilding the base.

On July 13, 2026 (Taipei time), according to financial media Crowdfund Insider, digital asset brokerage and brokerage-style firm FalconX released a new market analysis report. The report vividly outlines the cooling state of the crypto market in Q2 2026: speculative high-frequency trading has pulled back significantly, and institutional-grade capital has also reallocated due to the macro environment, causing total spot trading volume to shrink to a quarterly low in nearly three years. However, this process of “popping the bubble” may be laying down a solid constructive bottom for the rebound in the second half of the year.

Speculation exits, leverage drops sharply, and spot trading volume hits the lowest level since 2023

FalconX data shows that spot trading volume for the entire Q2 quarter was only $1.6 trillion, not only down 25% quarter-on-quarter, but also a sharp plunge of 42% versus the same period last year. This marks the lowest quarterly activity record since Q3 2023. Meanwhile, derivatives were not spared: Q2 futures trading volume was $9 trillion, down 12% quarter-on-quarter and 31% year-over-year.

What’s encouraging, though, is that the data shows the market bottomed out in May, and June’s spot trading volume rebounded 13% month-on-month to $568 billion, hinting at a bottoming rebound. On leverage indicators, open interest (OI) fell to $53.2 billion at quarter-end—far below the $122.2 billion peak seen in October 2025. The overall turnover ratio for the market also dropped to 1.6x. Taken together, these signs suggest investors have shifted dramatically away from high-frequency short-term speculation toward medium- and long-term value holding.

Bitcoin ETF sees net outflows of $4.9 billion, stablecoin supply contracts unusually

In terms of institutional capital flows, Q2 Bitcoin spot ETFs faced significant redemption pressure, with net outflows totaling $4.9 billion for the quarter, resulting in cumulative net flows since the start of the year turning negative at $5.4 billion. Analysts noted that these outflows were mainly concentrated after mid-May, likely tied to concerns sparked by MicroStrategy’s capital strategy adjustments, as well as institutional capital reallocation triggered by major events such as SpaceX’s IPO in the US stock market.

By contrast, the newly emerging Hyperliquid (HYPE) ETF performed very strongly, attracting $300 million in its launch. Although it initially accounted for 8% of spot trading volume (later stabilizing at 5%), the report stressed that crypto-native trading platforms still firmly dominate the market’s price discovery function.

Another cautious signal is stablecoin supply. After several consecutive quarters of growth, global stablecoin total supply contracted for the first time in Q2—down $7.4 billion (a 2.3% decline) to $313.8 billion. The largest decreases came from USDC, USDe, PYUSD, and USDS. The outflows were mainly concentrated on Ethereum-chain activity, while USDT maintained a small increase.

Sector breakthroughs are selective—Q3’s turning point hinges on “CLARITY Act”

Although the broader market is in a dull deleveraging period, there are still selective innovation highlights. Tokenized card trading platform Collector Crypt (CARDS) surged against the trend in the second quarter: the token price jumped 420%. A spike in daily active users drove a peak in daily revenue nearing $1 million, helping it break into the global top ten crypto protocols by revenue—showing that the RWA physical tokenization track still has extremely strong capital-attraction momentum.

Looking ahead to the third quarter, FalconX holds a neutral-to-constructive stance. Analysts believe market speculation and leverage have been flushed out thoroughly, the downtrend has largely run its course, and open interest is stabilizing. While Q3 usually carries the risk of seasonal sluggishness in summer, the market is waiting for two major catalysts to ignite: first, a rebound in US spot ETF capital flows; second, legislative action in the US Senate this month on the “CLARITY Act” (current market odds estimate around 40%–47% for passage). Once the text of the bill or a vote signals positive momentum—and paired with the traditionally stronger fourth-quarter (Q4) environment—crypto markets could see a more explosive rally by year-end.