Chiara Bianchi
Cryptocurrency trading volumes have significantly declined from their post-election highs, now hovering around $35 billion—a level similar to what was observed before Donald Trump’s presidential victory.
After the November 5 election, daily exchange volumes spiked to $126 billion, fueled by increased crypto market excitement and speculative trading. However, this figure has since dropped by approximately 70%, signaling a return to pre-election trading patterns. The recent announcement of tariffs on major U.S. trading partners has also introduced market uncertainty, dampening enthusiasm in both traditional finance and crypto sectors.
Trading volumes continue to closely track overall market capitalization, which has followed a similar downward trajectory in recent months.
At its peak, the total cryptocurrency market cap reached $3.9 trillion, but it has since declined to around $2.9 trillion—a 25% drop. This contraction in volume could be a precursor to major market movements, as historically low liquidity has often led to amplified price swings when institutional investors begin reallocating assets.
Is the Market Entering an Accumulation Phase?
Some investors may be taking a cautious approach, waiting for greater clarity on the Trump administration’s stance on cryptocurrency regulation before re-entering the market.
The combination of lower trading activity and a relatively stable market cap suggests that the crypto market may be in an accumulation phase, where investors are focused on long-term positioning rather than frequent trading.
Regulatory Developments Could Be Key to Reigniting Activity
Upcoming policy announcements regarding crypto regulation, asset classification, and oversight structures could serve as potential catalysts for renewed market activity. If regulatory clarity emerges, it may restore confidence, driving higher trading volumes and price volatility in the coming months.
