As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous market trends and cycles. However, the surge in trading volume on centralized cryptocurrency exchanges (CEXs) in November has caught my attention more than any other event in recent memory.
In November, the trading activity on major cryptocurrency exchanges reached unprecedented levels, surpassing the $10 trillion mark collectively in both spot and derivative markets, as reported by CCData, a prominent research organization in the crypto sector, on December 3rd.
As an analyst, I’m sharing some interesting insights from our latest data. This past November saw a significant milestone in the digital trading market: for the first time, monthly trading volumes surpassed $10 trillion, according to CCData. Moreover, there was a striking increase of over 100% in CEX volumes compared to the previous month.
The increase in action we’ve seen is primarily due to a change in investor attitudes, stemming from the recent United States presidential election,” as stated in their analysis.
In November, the value of cryptocurrencies significantly increased due to heightened expectations for favorable U.S. policies towards digital currencies following Donald Trump’s comprehensive victory in the presidential election.
According to the report, investors and dealers swiftly moved to take advantage of the favorable trends in digital currencies, as they now expect a friendlier regulatory landscape under the newly elected government.
Spot and derivative markets
The increased trading was particularly noticeable in the cryptocurrency market, where the monthly transaction volume soared by approximately 130%, reaching over $3.4 trillion, as stated in the report.
Multiple digital asset trading platforms such as Upbit, Bybit, Crypto.com, Gate.io, and Bullish achieved record highs in monthly trade volumes, according to data from CCData.
On November 5th, Galaxy Digital’s crypto trading shares surged by 25% following Donald Trump’s election victory, which marked the company’s most active trading day in terms of cryptocurrency for the whole year.
The trading volume in crypto derivative markets significantly increased, showing a rise of almost 90% compared to the previous month. This surge brought the overall trading volume to approximately $6.9 trillion, as reported by CCData.
On the 6th of November, Arkham introduced a digital asset derivative trading platform. This new platform is said to cater primarily to individual investors and aims to challenge established players like Binance in the market.
Impact of crypto options
The anticipated growth in the trading volume of cryptocurrency derivatives is likely to continue, given that exchanges start listing options for Bitcoin ETFs.
In November, a number of trading platforms, such as the New York Stock Exchange (NYSE) and Nasdaq, started offering Bitcoin ETF options following the approval from the Securities and Exchange Commission (SEC) in September.
On November 18, the initial trading day, options contracts linked to BlackRock’s Bitcoin ETF accumulated nearly a total investment of $2 billion.
Experts believe that the introduction of a Bitcoin Spot ETF in the U.S. will likely speed up the acceptance among institutions, and could possibly provide significant benefits for those holding Bitcoin.
In simpler terms, options are agreements that allow you to either purchase (a call option) or sell (a put option) a specific asset at a predetermined price in the future.
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2024-12-04 21:17