JPMorgan Flags Broad Decline in Crypto Activity as Volumes and Prices Fall
Crypto markets pulled back sharply last month, with trading activity and asset prices weakening across spot, derivatives and stablecoin markets, according to a new report from JPMorgan.
The bank said volumes fell as bitcoin, ether and most major tokens declined. Stablecoin usage slowed materially, with average daily turnover dropping 26% month-on-month, while activity across decentralized finance (DeFi) and non-fungible tokens (NFTs) also softened.
Analysts led by Kenneth Worthington attributed the slowdown to growing concerns around leverage, renewed debate over a potential crypto winter and continued underperformance relative to equity markets. These pressures overshadowed a small number of mergers, acquisitions and product launches during the period.
Investor flows into U.S.-listed crypto investment vehicles turned negative. Spot bitcoin exchange-traded funds recorded $3.4 billion in net outflows in November, effectively reversing the inflows seen a month earlier.
Liquidity conditions deteriorated alongside prices. Spot trading volumes declined 19% in November, according to CoinDesk data, with TradingView figures pointing to a steeper drop of roughly 23%, JPMorgan said.
Bitcoin’s market capitalization fell 17% to $1.8 trillion, outperforming ether, whose market value dropped 22% to $361 billion. Even so, digital assets lagged traditional markets, with the S&P 500 ending the month flat and the Nasdaq 100 down around 2%.
Overall, total crypto market capitalization declined 17% to $3.04 trillion, while publicly listed crypto-related stocks lost roughly 21% of their value.
Share this content:
