Bitcoin's Remarkable Surge in November Driven by Political Factors, According to JPMorgan

November marked an extraordinary month for the cryptocurrency sector, achieving unprecedented milestones fueled by political changes and heightened investor enthusiasm, as indicated by a recent report from JPMorgan.

What Happened: The reelection of Donald Trump as President effectively ignited a historic rally in the crypto market, leading to significant gains in overall market capitalization across the digital asset landscape, according to analysts led by Kenneth Worthington.

This surge positively influenced a variety of cryptocurrencies, including tokens, decentralized finance (DeFi) platforms, stablecoins, and publicly traded companies linked to these assets.

The report emphasized a staggering 45% increase in the total market capitalization of cryptocurrencies, reaching an impressive $3.3 trillion, marking the highest monthly return ever recorded.

Additionally, trading volumes in the crypto realm more than doubled during the month, with some digital assets experiencing even more substantial trading activity.

However, it was noted that non-fungible token (NFT) volumes failed to keep pace with the overall growth in the market.

The bank reported a notable rise in the activity of U.S. spot exchange-traded products (ETPs), which recorded a combined monthly net sales of $7.6 billion, setting a new benchmark.

Also Read: MicroStrategy Acquires $2.1B Worth of Bitcoin, Total Holdings Now Exceed 423,000 BTC

Specifically, Bitcoin (BTC) ETPs saw growth in both their size and trading volume, now managing assets worth $105 billion, highlighting Bitcoin's increasing prominence within the broader crypto market.

The report mentioned that while Bitcoin ETPs have not significantly diminished BTC spot trading volumes, the entire ecosystem is increasingly being centralized around Bitcoin.

Although Bitcoin's dominance had been rising throughout 2024, a slight decline was recorded recently, which JPMorgan attributed to the burgeoning popularity of BTC ETPs, drawing substantial interest from investors.

On the mining side, November brought notable advancements in Bitcoin mining economics. The rising price of Bitcoin during this period outpaced the growth in its hashrate—essentially the computational power needed to secure the network—resulting in improved profitability for miners.

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Bitcoin, Trump, Crypto