Crypto Trading Volumes Slump as Market Pullback Triggers ETF Outflows, JPMorgan Says

Crypto markets retreated sharply last month, with prices and trading activity falling across spot, derivatives and stablecoin markets, according to a new report from JPMorgan.

The Wall Street bank said overall crypto trading volumes declined amid a broad-based market pullback that saw bitcoin, ether and most major tokens post losses. Stablecoin activity weakened notably, with average daily turnover down 26% month-on-month, while decentralized finance (DeFi) and non-fungible token (NFT) volumes also fell significantly.

Analysts led by Kenneth Worthington pointed to rising concerns over leverage, renewed talk of a potential crypto winter and continued underperformance relative to equities as key drags on sentiment. These factors outweighed the impact of a limited number of mergers, acquisitions and product launches during the period.

Flows into U.S.-listed crypto investment products turned negative as well. U.S. spot bitcoin ETFs recorded $3.4 billion in net outflows in November, reversing October’s net inflows, the report said.

Trading activity deteriorated in tandem. 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 dropped 17% to $1.8 trillion, outperforming ether, whose market value fell 22% to $361 billion. Even so, crypto assets materially lagged traditional equity benchmarks, with the S&P 500 flat and the Nasdaq 100 down roughly 2% over the month.

Overall, total crypto market capitalization declined 17% to $3.04 trillion, while publicly listed crypto-related equities lost 21% of their value.