Crypto Market Erases Election-Driven Gains, Investor Sentiment Hits Historic Low

The cryptocurrency market has experienced a significant correction, erasing its post-election surge of 91%. This reversal has brought the market back to levels last seen in November 2024, when optimism was high following Donald Trump's presidential election victory.

According to data from Total3, an indicator tracking the total crypto market capitalization excluding Bitcoin and Ethereum, the market had surged from around $600 billion to over $1.16 trillion by December 2024. However, this rally was short-lived, and prices have since retreated to their November levels.

Bitcoin and Ethereum were among the hardest hit assets, with prices falling by more than 50% and 60%, respectively. This decline reflects a broader contraction in risk appetite across the crypto sector, leading to increased volatility and decreased investor confidence.