The cryptocurrency market has retraced most of the gains from the 2024-2025 rally, which began after the U.S. elections. The total crypto market capitalization, excluding Bitcoin and Ether, saw a surge of over 91% immediately following the November 5, 2024, election results, reaching $1.16 trillion by December 2024. This figure represented a substantial increase from the roughly $600 billion valuation prior to the election.
The market experienced volatility through early 2025, briefly touching $1.13 trillion on January 18, just before the presidential inauguration. A new peak of approximately $1.19 trillion was reached in October 2025, shortly before a significant market crash disrupted the sector's uptrend. Currently, the Total3 Market Cap stands around $713 billion, showing no immediate signs of sustained recovery.
Major cryptocurrencies have also seen substantial corrections. Bitcoin (BTC) fell over 50% from its peak, reaching a low of about $60,000 before recovering to $68,000. Ether (ETH) experienced a decline of about 60% from its all-time high of nearly $5,000, achieved in August 2025.
Investor sentiment has reached multi-year lows, with the Fear and Greed Index indicating "extreme fear" at 14. The index previously dropped to a low of 5 on February 5, marking the lowest point recorded in available data.