JPMorgan: Crypto Volumes Weakened Across the Board as Markets Slid

JPMorgan: Crypto Volumes Slide as Market Retreat Spurs ETF Outflows

Crypto markets weakened broadly last month, with prices and trading activity declining across spot, derivatives and stablecoin markets, according to a report from JPMorgan.

The bank said trading volumes fell sharply as bitcoin, ether and most major tokens retreated. Stablecoin turnover saw a notable slowdown, with average daily volumes dropping 26% from the prior month, while activity in decentralized finance (DeFi) and non-fungible tokens (NFTs) also contracted.

Analysts led by Kenneth Worthington cited rising concerns around leverage, renewed fears of a prolonged market downturn and continued underperformance versus traditional equities as key factors weighing on sentiment. These pressures outweighed the positive impact of select mergers, acquisitions and new product launches during the period.

Investor flows into U.S.-listed crypto products also reversed. Spot bitcoin exchange-traded funds in the U.S. recorded $3.4 billion in net outflows in November, erasing October’s inflows, the report said.

Market liquidity deteriorated alongside prices. Spot trading volumes declined 19% month-on-month in November, based on CoinDesk data, while TradingView figures indicate a drop closer to 23%, JPMorgan noted.

Bitcoin’s market capitalization fell 17% to $1.8 trillion, outperforming ether, whose market value dropped 22% to $361 billion. Despite this relative strength, crypto assets lagged equity markets, with the S&P 500 flat and the Nasdaq 100 down about 2% over the month.

In total, the crypto market’s capitalization declined 17% to $3.04 trillion, while publicly traded crypto-related equities fell 21%.