Cryptocurrency daily trading volume fell 70% from a peak of $126 billion during the US election to $35 billion

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 and back 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 25% drop.

The shrinking trading volume may indicate a variety of potential changes in the market in the coming months. Historically, long-term declines in trading volume have often preceded major market fluctuations, as reduced liquidity can amplify price impacts when large players begin to reconfigure.

Market participants may be waiting for the Trump administration's overall approach to cryptocurrency regulation to become clearer before getting more actively involved. The decline in trading activity and relatively stable market capitalization suggest that 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.