Cryptocurrency markets experienced a broad decline in November, with trading volumes dropping across spot, derivatives, and stablecoins, according to a JPMorgan analysis. Bitcoin and ether led the losses, while U.S. crypto exchange-traded products saw significant outflows. The total market capitalization fell 17% to $3 trillion amid concerns over leverage and underperformance against equities.
Last month, the cryptocurrency sector faced a marked downturn, as detailed in a report from JPMorgan analysts led by Kenneth Worthington. Spot volumes declined 19% month-on-month, according to CoinDesk Data, with TradingView indicating a similar 23% drop. Stablecoin average daily volume fell 26%, while decentralized finance (DeFi) and non-fungible token (NFT) activity also slumped around 20% overall.
U.S. bitcoin spot exchange-traded funds (ETFs) recorded $3.4 billion in net outflows, reversing the previous month's gains. Ether exchange-traded products suffered their worst month ever, with $1.4 billion in net redemptions. These flows contributed to broader market weakness, overshadowed by factors like high leverage, speculation of a new crypto winter, and poor performance relative to traditional assets.
Bitcoin's market value decreased 17% to $1.8 trillion, outperforming ether, which dropped 22% to $361 billion. The overall crypto market cap contracted 17% to $3.04 trillion, while crypto-related public equities lost 21%. In contrast, the S&P 500 remained flat, and the Nasdaq 100 declined about 2%.
The report highlights how volatility and selling pressure froze trading activity, despite some mergers, acquisitions, and product launches. This slump underscores ongoing challenges in the sector's valuation and liquidity.
