Crypto Trading Volumes Drop 70% In Post-Election Surge

Crypto trading volume has fallen sharply after surging after the November 2024 presidential election. Daily exchange volumes, which soared to $126 billion following President Donald Trump’s election, have now dropped to around $35 billion. 

This sharp decline of about 70% brings the market back to its pre-election level. The initial spike was fueled by excitement and speculation, but recent economic developments have slowed things down. 

Crypto Valuation Falls Alongside Trading Volume  

The crypto market cap has dropped from its $3.9 trillion peak to around $2.9 trillion, a 25% decline. This downward trend reflects the decline in trading volumes, suggesting investors are cautious and waiting for clearer signals before making significant moves.

The bearish movement comes as new tariffs against major U.S. trading partners have created uncertainty, affecting both traditional and crypto markets. Investors are stepping back, waiting for more clarity before making big moves.

Historically, when trading volumes stay low for an extended period, it often signals a big price shift is coming. However, fewer buyers and sellers in the market often leads to liquidity drops, and any large trades can have a bigger impact on crypto prices. This usually causes sharp market swings.

Bitcoin Price Struggle To Break Resistance Level 

Bitcoin (BTC) sets the tone for the entire crypto market, and its recent price movements have been weak. The leading crypto asset is struggling to break through resistance levels, which have stopped its nearly four-month rise.

Despite the uncertainty, many remain optimistic, believing the digital currency could surge soon and possibly break out to new highs. Robert Kiyosaki, a renowned author and Bitcoin supporter, expects Bitcoin’s price to reach $200,000 this year. 

Whether Bitcoin’s price will break resistance or face a deeper correction in the coming weeks remains to be seen. Nevertheless, the crypto market trajectory still depends on macroeconomics and investor sentiment. 

Investors Are Waiting for Clearer Rules  

Despite the slowdown in crypto trading volume, the market cap has remained relatively stable. This could mean investors are holding onto their assets rather than selling, possibly preparing for future gains. 

Many traders are likely waiting to see how President Trump’s administration handles crypto regulation before making major decisions. The United States still lacks clear regulations for crypto, and many industry experts are calling on the present government to act. 

Once those regulatory policies become clearer, trading activity could pick up again. Until then, the market is in a holding pattern, with traders carefully positioning themselves for what is next.

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