Crypto Market Wipes Out Entire Post-Election Rally

The cryptocurrency market has undergone significant changes following the U.S. elections in December 2024. The Total3 indicator, which tracks the total cryptocurrency market capitalization excluding Bitcoin and Ethereum, had surged to $1.16 trillion after Donald Trump's victory. However, this rally was short-lived, and prices have since returned to levels seen before his inauguration.

According to data, the market corrected to the $900 billion range in 2025 but made a final push to $1.13 trillion on January 18, 2025. After that, prices remained largely flat until October, when Total3 climbed to a new local high of around $1.19 trillion. However, this breakout quickly failed, triggering a prolonged decline with no convincing recovery so far.

The market's downturn has also led to a significant drop in investor sentiment, with the Crypto Fear and Greed Index currently standing at 9 - firmly placing it in the 'extreme fear' zone. This is the longest sustained period of fear since the Terra-LUNA crash in 2022, and it remains to be seen whether this marks the end of the era of boom-and-bust cycles.