PANews reported on March 30 that according to The Block, after the US election on November 5, the daily trading volume of cryptocurrencies soared to $126 billion amid high market enthusiasm and active speculation. It has now dropped to $35 billion, down about 70% from its peak, returning to pre-election levels. Recent tariff announcements against major US trading partners have created uncertainty, weakening trading enthusiasm in both traditional and cryptocurrency markets. In addition, trading volume has maintained a historical correlation with total market capitalization, with both trends similar in recent months. The total market capitalization of cryptocurrencies reached about $3.9 trillion at its peak, and then fell back to the current level of about $2.9 trillion, a drop of 25%.
Shrinking volumes could signal a variety of potential changes in the market in the coming months. Historically, prolonged declines in volume have preceded major market moves, as reduced liquidity can amplify price impacts when large players begin to reallocate.
Market participants may be waiting for more clarity on the Trump administration’s overall approach to cryptocurrency regulation before engaging more actively. Declining trading activity and relatively stable market capitalization suggest an accumulation phase may be underway, with investors more focused on positioning than active trading. Upcoming regulatory announcements, particularly regarding cryptocurrency classification and regulatory structure, could serve as a potential catalyst to reignite trading activity.
