Cryptocurrencies on the rise: November brought record trading volumes thanks to Trump's victory

Cryptocurrencies on the rise: November brought record trading volumes thanks to Trump's victory

November 2024 was a historic month for cryptocurrency exchanges, which saw a three-year high in trading volumes. The victory of US President-elect Donald Trump at the beginning of the month brought a new wave of optimism about more favourable regulation in the cryptocurrency sector. As it turns out, the clearer regulatory framework and positive outlook for the future have attracted new entrants to the market.

According to data from New Hedge, which monitors crypto markets, cryptocurrency spot volume reached an impressive $2.9 trillion in November, the highest since May 2021. A spokesperson for the Crypto.com exchange confirmed that November was the "strongest month in a year" for their platform, with record trading volumes.

"As a company and as an industry, we are seeing growing interest and investment in cryptocurrencies, which has led to record trading volumes around the world," exchange officials said. They expect the positive market sentiment to continue in the first quarter of next year.

The results of the US election, which brought hundreds of pro-crypto candidates to Congress, create the impression that the US government will become the most crypto-friendly administration in history. This change could lead to a more favorable regulatory environment that would encourage further growth in the industry.

Outside the US, investor confidence is also increasing, particularly with jurisdictions committing to clearer regulatory frameworks for digital assets. Jonathon Miller, Kraken's managing director for Australia, confirmed that the exchange had experienced a solid month, with trading volumes in perpetual contracts, particularly Bitcoin, Solana and Dogecoin, reaching new all-time highs.

Miller further stated, "We saw a sharp increase in our perpetual contract volumes as traders sought to leverage or hedge against risk during the post-election market upswing."

The growth in trading volumes was also supported by the approval of bitcoin exchange-traded funds (ETFs) in major markets. In November, a total of $6.87 billion was collected in bitcoin ETF spot funds during the month-long bull run, indicating growing institutional interest in the cryptocurrency.

"The introduction of bitcoin ETF options has made it easier for institutional investors to gain exposure and hedge against risks, which has contributed significantly to the recent rally," said a Binance spokesperson.

The total market capitalization of cryptocurrencies continues to grow, reaching $3.47 trillion as of Dec. 2, according to CoinMarketCap. With the continued inflow of money into ETFs and favorable macroeconomic conditions, including a reduction in interest rates, the cryptocurrency market is expected to continue to move in a positive direction.

Thanks to the optimistic atmosphere and hopes for more favourable regulation, cryptocurrencies are coming to the fore, and November 2024 will go down in history as the month when the digital asset market reached a new level.

*This is not an investment advisory.

Coingarage team