Market Retreats as Election Rally Fades
Data shows that the cryptocurrency market has largely retraced the gains made following the 2024 US presidential election. Total3, a market capitalization metric excluding Bitcoin and Ethereum, surged over 91% after the election results were announced on November 5, 2024, rising from approximately $600 billion to $1.16 trillion by December 2024.
Volatility Increases as Rally Stalls
The market then entered a consolidation phase, fluctuating around $900 billion. A short-lived rebound brought Total3 back to $1.13 trillion ahead of the presidential inauguration in January 2025, but the momentum did not last. In October 2025, Total3 briefly reached a new peak of $1.19 trillion before facing a significant sell-off, disrupting the previous upward trend.
Current Conditions Show No Clear Recovery
As of now, Total3 stands at approximately $713 billion, about 40% below its October 2025 high and back to levels last seen in mid-November 2024. There are currently no clear signs of a sustained recovery, with market sentiment remaining cautious.
Mainstream Assets Also Decline
- Bitcoin dropped over 50% from its peak, briefly falling to around $60,000, and has since partially rebounded to approximately $68,000.
- Ethereum declined roughly 60% from its late-2025 high near $5,000, with prices still under pressure.
Market Sentiment Reaches Extreme Fear
Market sentiment indicators remain deeply bearish. The CMC Fear & Greed Index is currently at 14, signaling extreme fear. On February 5, it plunged to as low as 5, one of the lowest levels recorded, indicating severely damaged investor confidence.