Crypto market retraces almost all 2024-2025 US election pump gains

CoinTelegraph

by Vince Quill

February 21, 2026

AI-Generated Deep Dive Summary

The crypto market has experienced a significant reversal of fortunes following the historic crash in October, erasing nearly all gains made during the 2024-2025 US election-driven "pump." The market lost approximately 40% of its value from the peak reached in October 2025, marking a sharp downturn after a period of rapid growth. This decline underscores the volatility inherent in the cryptocurrency sector and raises concerns among investors about market stability. The rally began immediately after the US Presidential election results on November 5, 2024, with the Total3 Market Cap—a metric excluding Bitcoin (BTC) and Ethereum (ETH)—surging by over 91%. By December 2024, this figure had reached a high of $1.16 trillion, up from approximately $600 billion just before the election. This surge was fueled by optimism surrounding potential regulatory clarity and increased institutional interest in cryptocurrencies. However, the euphoria was short-lived. The market crash in October 2025 sent shockwaves through the crypto community, leading to a significant drop in investor sentiment. This reversal highlights the risks associated with relying on political events for market momentum. While elections can trigger sudden spikes in value, they often fail to provide sustainable growth without underlying structural changes. For those invested in cryptocurrency, this development serves as a reminder of the importance of diversification and risk management. The crypto market's volatility is unlikely to subside anytime soon, especially with ongoing regulatory uncertainties and shifting investor sentiment. This makes it crucial for stakeholders to stay informed about market trends and adapt their strategies accordingly. Ultimately, the crypto market's trajectory remains closely tied to broader economic conditions and policy developments. As the sector continues to evolve, understanding these dynamics will be key for investors seeking long-term success in this rapidly changing landscape.

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Originally published on CoinTelegraph on 2/21/2026