November witnessed the highest Cryptocurrency trading volume in three years, starting from Donald Trump's election victory at the beginning of the month, along with new hopes for more favorable Cryptocurrency regulations.
According to data from the New Hedge market tracking tool, Cryptocurrency trading volume on exchanges reached $2.9 trillion in November, the highest since May 2021.
A Crypto.com spokesperson said November was the platform's strongest month of the year, setting a record for trading volume.
Cryptocurrency volume neared the $3 trillion mark in November as expectations of more favorable Cryptocurrency regulations have attracted many new entrants to the field. Source: New Hedge
"As a company and as an industry, we have seen increasing interest and investment in Cryptocurrencies, which has led to record-breaking global trading volume in the past few weeks," they said.
"We expect the positive market sentiment to continue into the first quarter of next year," they added.
According to the spokesperson, the growth could be driven by the recent US election results and the prospect of greater clarity in market regulations.
Hundreds of Cryptocurrency-friendly candidates have won seats in Congress, and industry leaders believe the US government will become the most Cryptocurrency-friendly administration in history, potentially leading to a more favorable legal environment.
Outside the US, "the industry and those wanting to invest in Cryptocurrencies have gained more certainty," partly due to jurisdictions introducing or committing to digital asset regulatory frameworks.
"This is a key factor driving global adoption and trading volume growth," they added.
Jonathon Miller, Kraken's managing director in Australia, told TinTucBitcoin that the exchange also had a stable month, particularly in perpetual trading volume.
According to Miller, Bitcoin (BTC) perpetual contracts accounted for the majority of the activity, with Solana (SOL) and Dogecoin (DOGE) reaching new monthly highs.
"Kraken has seen an increase in our perpetual contract volume as traders seek leverage or risk hedging in the post-election market growth," Miller said.
"While much of this activity has centered on Bitcoin futures contracts, interest in both Dogecoin and Solana has reached new highs, with DOGE's 24-hour volume first surpassing Ether."
Miller said both assets have exhibited greater volatility, providing more trading opportunities this year and have clearly benefited from the recent recovery, with Dogecoin leading the meme coin movement.
Bitcoin ETFs Fuel a Bumper Month
Speaking to TinTucBitcoin, a Binance spokesperson said the exchange has "observed more participants entering the Cryptocurrency market."
They speculated that the reasons could be due to multiple factors, such as the approval of Bitcoin ETFs in major markets and their continued success.
In November, the prolonged price rally saw Bitcoin spot ETFs rake in a total of $6.87 billion, with outflows reaching $411 million.
While the total market capitalization for the entire Cryptocurrency market continued to rise, standing at $3.47 trillion as of December 2, according to CoinMarketCap.
The total market capitalization of the Cryptocurrency market has continued to reach new highs this year. Source: CoinMarketCap
"The introduction of Bitcoin ETFs has made it easier for institutional investors to access and hedge risk, contributing significantly to the recent recovery," the Binance spokesperson said.
"With large capital flowing into these ETFs, Bitcoin is poised for deeper integration into the mainstream financial market."
The recent changes in macroeconomic conditions have also played a crucial role in Bitcoin's recovery, according to the Binance spokesperson.
Specifically, the US Federal Reserve's pivot to rate cuts after a prolonged tightening, increased global liquidity, and capital flows into assets seen as inflation hedges and scarce.
"The prospect of a Cryptocurrency-friendly administration under Trump has fueled optimism in the market, with promises to turn the US into a global Cryptocurrency hub on the campaign trail," the Binance spokesperson said.
"Discussions around a US Strategic Bitcoin Reserve and potential regulatory changes are also boosting investor confidence."
