Crypto Market Gives Back Nearly All Gains from the 2024‑2025 Rally
The sector’s total market value has slipped roughly 40 % from its October 2025 high, erasing most of the upside generated after the 2024 U.S. presidential election.
Overview of the recent correction
The crypto‑wide capitalization metric that excludes the two dominant assets, Bitcoin (BTC) and Ether (ETH), – commonly called Total3 Market Cap – surged by more than 90 % in the weeks following the November 5, 2024 U.S. election result. The index climbed from about $600 bn to a peak of $1.16 tn by the end of 2024, driven by heightened speculation that a new administration would adopt a crypto‑friendly stance.
After reaching that level, the market entered a volatile phase:
| Period | Approx. Total3 Cap | Notable Events |
|---|---|---|
| Dec 2024 – Jan 2025 | $900 bn‑$1.13 tn | Whipsawing prices; brief rebound to $1.13 tn on Jan 18, two days before Donald Trump’s inauguration. |
| 2025 (mid‑year) | ~ $950 bn – $1.0 tn | Lateral trading amid mixed regulatory signals. |
| Oct 2025 | $1.19 tn | All‑time high for the metric, just before a market‑wide crash linked to new U.S. tariffs on Chinese tech and a sharp Bitcoin dip. |
| Feb 2026 (publication) | $713 bn | Roughly the same level recorded on Nov 10 2024; no clear signs of a sustained rebound. |
The decline from the October 2025 apex to the current $713 bn figure represents a ~40 % loss of value, effectively wiping out almost the entire upside that the market enjoyed during the 2024‑2025 run‑up.
Bitcoin and Ether mirror the broader trend
- Bitcoin (BTC) has shed more than half of its price from the recent high, sliding to a trough near $60 k before stabilising in the upper $60‑70 k range.
- Ether (ETH) experienced an even steeper correction, falling roughly 60 % from its August 2025 record of almost $5 k to current levels well under $2 k.
Both assets have struggled to regain momentum, indicating that the downturn is not confined to altcoins but is systemic across the crypto ecosystem.
Investor sentiment hits historic lows
The CoinMarketCap Fear & Greed Index, a widely‑watched barometer of market mood, stands at 14, classifying the environment as “extreme fear.” The index briefly dropped to 5 on February 5, the lowest reading ever recorded by the metric, underscoring the depth of pessimism among traders and investors.
Drivers behind the round‑trip decline
- Political catalysts – The initial rally was triggered by expectations of a supportive U.S. policy environment after the 2024 election. Subsequent events, notably Donald Trump’s 2025 inauguration and later policy moves such as tariff threats on Chinese technology, reversed that optimism.
- Regulatory headwinds – Signals from the U.S. Treasury and the SEC in early 2025 hinted at tighter oversight, prompting risk‑averse behaviour.
- Macro‑economic pressures – A dovish shift by the Federal Reserve in mid‑2025 temporarily buoyed sentiment, but inflation‑related concerns resurfaced later in the year, tightening liquidity.
- Technical exhaustion – Chart patterns from late 2024 showed a classic “pump‑and‑dump” formation, with rapid price expansion followed by a steep correction once buying pressure waned.
Key takeaways
- Near‑complete loss of recent gains: The crypto sector has given back almost all the upside generated after the 2024 U.S. election, with total market cap down 40 % from its October 2025 high.
- Broad‑based sell‑off: Both leading coins, BTC and ETH, have retraced 50‑60 % of their peaks, indicating a sector‑wide correction rather than a narrow altcoin shake‑out.
- Sentiment at record lows: The Fear & Greed Index’s “extreme fear” reading suggests that market participants are highly risk‑averse, which could suppress buying pressure in the short term.
- Potential for stabilization: While the market is hovering near the $700 bn mark—similar to levels seen in late 2024—no clear catalyst for a sustained recovery has emerged yet. Investors may be waiting for clearer regulatory guidance or a macro‑economic pivot before re‑entering.
- Strategic outlook: For long‑term holders, the correction could present a re‑entry point if fundamentals such as on‑chain activity and institutional interest remain intact. Conversely, short‑term traders should remain cautious given the heightened volatility and prevailing fear sentiment.
The data referenced above are drawn from trading‑view charts and CoinMarketCap sentiment metrics. As always, readers should conduct their own due‑diligence and consider the inherent risks of cryptocurrency investments.
Source: https://cointelegraph.com/news/crypto-retraces-gains-2024-2025-pump?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
