Remember that brief crypto surge after the election? Gone. Daily trading volumes on exchanges have cratered 70% from a post-election peak of $126 billion, sliding right back to a pre-hype $35 billion.
Enthusiasm following the November 5th election pumped daily crypto trades to $126 billion, fueled by market speculators. However, recent tariff noise against US trading partners injected uncertainty, chilling both crypto and traditional markets and erasing that spike.
Trading volumes are mirroring the overall crypto market cap’s trajectory. The total market capitalization for cryptocurrencies has shrunk by 25%, falling from a $3.9 trillion peak to around $2.9 trillion.
Historically, sustained volume declines like this often foreshadow significant market movements. Dwindling liquidity can amplify price swings if major players start rearranging their positions.
Market participants might be pausing for a clearer picture of the Trump administration’s cryptocurrency regulations. This combination of reduced trading but relatively stable market cap hints at a possible accumulation phase, suggesting investors are strategically positioning rather than actively trading.
Future regulatory announcements, especially concerning cryptocurrency classification and oversight, could act as catalysts to jumpstart trading activity again.