Crypto Exchange Volumes Surge to 3-Year High in November

Jimmy Aki
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Crypto volumes surged to a three-year high in November, driven by President-elect Donald Trump’s election victory and renewed optimism for favorable cryptocurrency regulations in the United States.

 

Crypto Volumes Hit Multi-Year Peak Amid Election Optimism

Data from crypto market tracker New Hedge reveals that spot crypto exchange volumes reached $2.9 trillion in November, marking their highest level since May 2021.

Regulatory developments and election results played a crucial role in the spike. A Crypto.com spokesperson described November as the platform’s “strongest month in the last year,” citing record-high trading activity.

They attributed the increase to growing interest in cryptocurrencies and noted, “We anticipate positive market sentiment will continue into the first quarter of next year.”

The pro-crypto stance of newly elected U.S. lawmakers has fueled hopes of a more accommodating regulatory environment. Hundreds of pro-crypto candidates won Congressional seats, raising expectations for the “most pro-crypto government in U.S. history,” according to industry observers.

Outside the U.S., jurisdictions embracing digital asset frameworks have further boosted global trading activity. A Crypto.com representative explained, “This has been an important factor in driving global adoption and increasing trading volumes.”

Bitcoin ETFs and Market Liquidity Propel Trading Activity

Bitcoin exchange-traded funds (ETFs) also played a significant role in November’s record-setting volumes. Spot Bitcoin ETFs raked in $6.87 billion during the month despite minor outflows of $411 million.

These instruments have made crypto more accessible to institutional investors.

A Binance spokesperson commented, “The introduction of Bitcoin ETF options has made it easier for institutional investors to gain exposure and hedge risks, contributing significantly to the recent rally.”

Global economic factors have also supported the surge. Lower U.S. interest rates, rising global liquidity, and increased capital inflow into inflation-resistant assets like Bitcoin have created a favorable environment for crypto investments.

Kraken’s Australian Managing Director, Jonathon Miller, highlighted the increased demand for perpetual contracts, with Bitcoin, Solana, and Dogecoin leading the way. “Kraken has experienced a surge in our perpetual contract volumes,” Miller stated.

He added that Dogecoin perpetual exceeded Ethereum’s 24-hour trading volume for the first time, driven by heightened volatility and opportunities for leveraged exposure.

The Binance representative further linked market optimism to Trump’s pro-crypto rhetoric during his campaign.

Promises to establish the U.S. as a global crypto hub, alongside discussions about a U.S. Strategic Bitcoin Reserve, have bolstered investor confidence.

In July, the global crypto market also showed promising growth, with a CoinWire study predicting that crypto trading volumes could surpass $108 trillion by the end of 2024.

The report highlighted that Europe leads in global cryptocurrency transaction value, accounting for 37.32%, driven by proactive regulations like the EU’s Markets in Crypto-Assets framework.

Such developments, along with Binance’s dominance in over 100 countries, are setting the stage for a significant expansion in the crypto space.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.