Crypto Volumes and Prices Fell Broadly Last Month as ETF Outflows Mount: JPMorgan
Crypto markets pulled back sharply last month, with trading activity and prices declining across spot, derivatives and stablecoin markets, according to a report from JPMorgan.
The bank said bitcoin, ether and most major tokens posted losses as overall trading volumes weakened. Stablecoin turnover saw one of the steepest declines, with average daily volumes falling 26% month-on-month, while activity across decentralized finance (DeFi) and non-fungible tokens (NFTs) also contracted materially.
Analysts led by Kenneth Worthington pointed to growing concerns around leverage, renewed discussion of a potential crypto winter and continued underperformance versus equity markets as key drags on sentiment. These headwinds outweighed the positive impact of a small number of mergers, acquisitions and product launches during the period.
Investor flows into U.S.-listed crypto investment products also turned negative. U.S. spot bitcoin exchange-traded funds recorded $3.4 billion in net outflows in November, reversing October’s inflows, the report said.
Liquidity conditions deteriorated in parallel. Spot market volumes fell 19% month-on-month in November, based on CoinDesk data, while TradingView data suggests a decline closer to 23%, JPMorgan noted.
Bitcoin’s market capitalization declined 17% to $1.8 trillion, outperforming ether, whose market value dropped 22% to $361 billion. Even so, crypto assets lagged traditional equities, with the S&P 500 flat and the Nasdaq 100 down roughly 2% over the month.
Overall, total crypto market capitalization fell 17% to $3.04 trillion, while publicly listed crypto-related stocks lost 21% of their value.
