The cryptocurrency market has almost completely reversed the growth thanks to the 2024-2025 US elections.

The cryptocurrency market has wiped out most of the gains achieved during the strong growth phase of 2024-2025, which began after the 2024 U.S. presidential election. As of now, the market has lost approximately 40% of its value from the peak recorded in October 2025.

Total3 Market Cap, a metric measuring the total market capitalization of all cryptocurrencies (excluding Bitcoin and Ether), increased by over 91% immediately after the U.S. presidential election on November 5, 2024. This index reached a high of $1.16 trillion in December 2024, compared to $600 billion before this growth surge.

Total Market Capitalization from September 2024 to February 2026 | Source: TradingViewHowever, the market then declined to around $900 billion, with continuous fluctuations until January 2025. On January 18, the Total3 index temporarily recovered to $1.13 trillion, just two days before Donald Trump officially took office as U.S. President.

Throughout 2025, the cryptocurrency market mainly moved sideways. However, in October 2025, Total3 Market Cap hit a new high of $1.19 trillion—just a few days before a historic crash that broke the long-term upward trend of the entire industry.

Currently, Total3 Market Cap has fallen to about $713 billion, equivalent to the level on November 10, 2024. The market shows no signs of a sustainable recovery.

Major cryptocurrencies also suffered heavy losses. Bitcoin (BTC) price declined over 50% from its peak to its trough during the downturn, reaching a low of $60,000 before a slight recovery to around $68,000. Similarly, Ether (ETH) also dropped sharply by 60% from its all-time high of nearly $5,000 in August 2025.

Ether price peaked in August 2025 before sharply declining to its current level | Source: TradingViewInvestor sentiment is currently at its lowest in years. The Fear and Greed Index, a market sentiment indicator, is now at 14, indicating an “extreme fear” state according to data from CoinMarketCap. Notably, this index dropped to 5 on February 5, 2026—its lowest level ever recorded in the index’s history, based on available data.

The intense market volatility and pervasive negative sentiment pose significant challenges for investors and the prospects for recovery in the cryptocurrency sector in the near future.