The cryptocurrency market has entered what many refer to as the “diamond hands” phase — a term used to describe investors who hold onto their assets with unwavering conviction, regardless of market volatility or downturns. According to recent data, centralized exchange spot trading volumes have dropped to levels last seen in October 2020 — just before Bitcoin began its historic climb to $69,000. This suggests that many holders are refusing to sell, even amid low activity and uncertain conditions.

The Numbers Tell a Clear Story
The chart reveals a dramatic divergence between Bitcoin’s price action and trading behavior. While Bitcoin has maintained elevated prices above $80,000, the trading volume patterns paint a picture of a market in transition:

Spot trading volumes have collapsed to approximately $965.6 million USD

Futures trading activity remains relatively subdued compared to previous peaks

On-chain movement has similarly decreased, indicating coins are staying put in wallets

This volume compression is particularly striking when viewed against Bitcoin’s price trajectory, which has remained resilient despite reduced trading activity.

What HODL Mode Actually Means
The shift into “HODL mode” — a term originating from a misspelling of “hold” and now widely used to describe the strategy of holding onto crypto assets through volatility — represents a fundamental change in market psychology and behavior:

Supply Side Dynamics:

Long-term holders are refusing to sell despite significant price appreciation

Reduced coin circulation creates artificial scarcity

Lower trading volumes suggest conviction rather than speculation

Market Maturation:

Institutional adoption may be reducing retail trading volatility

Bitcoin ETF inflows could be absorbing selling pressure

Corporate treasury adoption creates permanent demand sinks