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Data: The daily trading volume of cryptocurrencies dropped from a peak of $126 billion after the U.S. election to $35 billion, a decrease of 70%

ChainCatcher news, according to The Block, on November 5, after the U.S. elections, the daily trading volume of cryptocurrencies surged to $126 billion against a backdrop of heightened market enthusiasm and active speculation. It has now fallen to $35 billion, a decline of about 70% from its peak, returning to pre-election levels. Recent tariff announcements targeting major U.S. trading partners have introduced uncertainty, dampening trading enthusiasm in both traditional and cryptocurrency markets.Moreover, trading volume has maintained a historical correlation with total market capitalization, with both showing similar trends in recent months. The total market capitalization of cryptocurrencies peaked at around $3.9 trillion, then fell back to the current level of about $2.9 trillion, a decrease of 25%.The shrinking trading volume may signal various potential changes in the market over the coming months. Historically, a prolonged decline in trading volume often precedes significant market volatility, as the reduction in liquidity can amplify price impacts when large participants begin to reallocate.Market participants may be waiting for a clearer comprehensive policy on cryptocurrency regulation from the Trump administration before engaging more actively. The decrease in trading activity and relatively stable market capitalization suggests that an accumulation phase may be underway, with investors focusing more on positioning rather than active trading. Upcoming regulatory announcements, particularly those regarding cryptocurrency classification and regulatory structure, could serve as potential catalysts to reignite trading activity.
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