Cryptocurrency trading volume shrinks rapidly after the U.S. presidential election

According to The Block, a virtual asset specialized media, the daily trading volume of major virtual asset exchanges has recently decreased to about $35 billion.

The cryptocurrency trading volume, which had soared to $126 billion shortly after the U.S. presidential election, is rapidly decreasing, returning to pre-election levels, according to The Block.

The daily trading volume of major virtual asset exchanges has decreased to about $35 billion, a 70% drop from the peak on November 5. The current trading volume has returned to levels seen before the election.

At the time, the market capitalization of virtual assets also shrunk by about 25% from its peak of $3.9 billion to the recent level of $2.9 billion.

Investors are focusing on adjusting their positions while waiting for policy direction and a clear regulatory framework. Market experts interpret the current phase as an accumulation phase rather than a simple trading slowdown.

The media analyzed, "While optimistic expectations and speculative demand flooded the market along with the election results, recently, political uncertainties such as U.S. government tariff impositions seem to be weighing on the market, leading to a contraction in trading sentiment."

After President Trump's election victory, the cryptocurrency market experienced a surge in trading volume and prices. However, the market has faced headwinds in recent months, with macroeconomic concerns and global trade tensions impacting investor sentiment.

The decrease in trading volume and the shift in investor behavior indicate a change in the market dynamics. As investors become more cautious and prefer to observe the unfolding economic and political landscape, the market is expected to stabilize and integrate the recent gains.