November delivered record-breaking performance across the cryptocurrency market, fueled by political developments and surging investor sentiment, according to a JPMorgan research report released Monday.
What Happened: "President-elect Donald Trump's reelection triggered a historic rally, leading to significant growth in market capitalization throughout the crypto ecosystem," analysts led by Kenneth Worthington noted, according to a Coindesk report.
The rally positively impacted tokens, decentralized finance (DeFi) projects, stablecoins and publicly traded companies tied to cryptocurrencies.
The report highlighted a 45% increase in the total crypto market capitalization, which reached $3.3 trillion—its highest monthly return on record.
Trading volumes across the crypto market more than doubled during the month, with some assets experiencing even greater activity.
However, non-fungible token (NFT) volumes continued to lag behind the broader market growth.
The bank also pointed to a surge in U.S. spot exchange-traded product (ETP) activity, which saw combined monthly net sales of $7.6 billion, marking a new record.
Also Read: MicroStrategy Acquires $2.1B Worth of Bitcoin, Total Holdings Now Exceed 423,000 BTC
Bitcoin (CRYPTO: BTC) ETPs, in particular, expanded in both size and trading volume.
These products now account for $105 billion in assets under management, underscoring Bitcoin's growing centrality to the broader crypto market.
"While Bitcoin ETPs are not significantly reducing BTC spot trading volumes, the ecosystem is becoming increasingly concentrated around Bitcoin," the report noted.
Bitcoin's dominance, which had been rising throughout 2024, saw a slight decline in recent weeks. JPMorgan attributed this to the increasing popularity of BTC ETPs, which have drawn significant investor interest.
On the mining front, November brought an improvement in Bitcoin mining economics.
The rally in Bitcoin's price outpaced growth in its hashrate—the computational power required to secure the network—resulting in better profitability for miners.
- Bitcoin Seller's Delight: Bhutan Transfers $40M In BTC To QCP Capital
Image: Shutterstock
