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The cryptocurrency market saw an incredible resurgence during November 2024, with a trading volume of $2.71 trillion in centralized exchange alone. This was the highest since May 2021, marking a rather sharp increase from the $1.14 trillion seen in October, according to the data released by The Block. Political changes, distinctive regulation, and investor confidence also contributed to the changes.
By accessing $986 billion of trading volume in a month, Binance reinforced its position and accounted for 36% of the monthly volume. Other significant performers were Crypto.com, Upbit and Bybit, each surpassing $200 billion in trading volumes. This was not a regional phenomenon since trading activities in world markets showed such improvement.
Derivatives markets have also registered record highs. Trading volumes of Bitcoin futures hit $2.59 trillion and Ethereum $1.28 trillion in one day, an all-time high over three years. These figures explain the rising levels of investor engagement and the involvement of large financial institutions in digital asset markets.
The market received its major push on November 6 when Donald Trump was reelected for the second term as the U.S. President. Famous for pro-crypto policies, Trump’s victory brought back hopes in the sector. Bitcoin reached its new high of $99,635, while Solana and other top tokens also witnessed a hike.
The GMCI 30 index, which measures the performance of the top 30 cryptocurrencies, outperformed with an increase of 62.3% because of a bullish market. However, the rally continued beyond spot trading as the manufacturing industry grew.
Bitcoin exchange-traded funds (ETFs) in the United States also attracted $6.4 billion in the same month. BlackRock’s iShares Bitcoin Trust ETF came out with $5.6 billion, followed by Fidelity’s Wise Origin Bitcoin Fund and Grayscale’s Bitcoin Mini Trust ETF.
The announcement that SEC Chair Gary Gensler is stepping down added to the growing positivity within the industry. Gensler, who approaches cryptocurrencies with his strict policy, will leave office on January 20, 2025. Many market participants see this as a chance for balanced, innovative, friendly policies.
Moreover, Crypto Fear and Greed Index reached a yearly high of 92 on November 22 indicating increased investors optimism. According to its latest quarterly report, Grayscale Investments revealed that the market capitalization of its cryptocurrency portfolio is up by 85% due to altcoins such as Stellar (XLM) and XRP.
