November was a historic month for the cryptocurrency market, with significant growth in performance, activity, politics, and sentiment, according to a JPMorgan research report released on Monday.
The report highlighted that the total crypto market cap surged by 45% in November, marking its best monthly return to date. This increase brought the total market cap to $3.3 trillion, driven by a broad rally across the crypto ecosystem, including tokens, decentralized finance (DeFi), stablecoins, and publicly traded companies with crypto exposure.
JPMorgan analysts, led by Kenneth Worthington, attributed much of the growth to the reelection of President-elect Donald Trump, which sparked a historic rally in the crypto market. The report noted that trading volumes across the crypto market more than doubled, with some digital assets experiencing even greater growth in trading activity. However, the report also pointed out that volumes for non-fungible tokens (NFTs) were relatively weaker during this period.
The U.S. spot exchange-traded products (ETPs) that JPMorgan tracks also saw record monthly net sales, totaling approximately $7.6 billion. Bitcoin ETPs, in particular, experienced growth in both size and trading volume. While these products are not significantly impacting BTC spot trading volumes, the report emphasized that the ecosystem is becoming increasingly concentrated around Bitcoin.
Bitcoin’s dominance, which had been rising throughout most of the year, has seen a slight decline in recent weeks. This decline is partly attributed to the growing popularity of Bitcoin ETPs, which held $105 billion in assets at the end of November, according to JPMorgan.
In terms of mining economics, the report noted that the rally in Bitcoin’s price outpaced the growth of its hashrate, improving the economics for miners. Hashrate refers to the computational power securing the Bitcoin network.
