A current evaluation reveals that 70% of cryptocurrencies on the crypto alternate Binance are actually buying and selling beneath their pre-US election costs.
This discovering contrasts with the broader market sentiment, which has been largely bullish in current months. The disparity signifies a disconnect between perceived momentum and precise value efficiency, elevating questions concerning the true state of the crypto market.
Election Hype Fades as Cryptocurrencies Commerce Decrease
In an X publish, analyst ltrd examined value actions of cryptocurrencies earlier than and after the elections, providing a clearer image of precise market efficiency.
“Almost 70% of cash are actually buying and selling decrease than they have been earlier than the elections!” the publish learn.
Whereas some cash surged considerably, the bulk have struggled to keep up their worth. The analyst outlined Hedera (HBAR), XRP (XRP), Mantra (OM), Stellar (XLM), and VeThor (VTHO) because the top-performing belongings.
In distinction, some belongings skilled sharp declines. This listing included Nerio (NEIRO) and THORChain (RUNE), BOOK OF MEME (BOME), ConstitutionDAO (PEOPLE), and dogwifhat (WIF).
One of the crucial fascinating revelations from the analyst’s information was the timing of market peaks.
“It seems the essential interval for merchants was between December third and December ninth—virtually 80% of cash hit their peak throughout this quick window,” he examined.
In line with the analyst, this slender window prompt that the market is very correlated, with most tokens reaching their peak inside a brief timeframe. Moreover, he additionally emphasised the significance of timing in buying and selling, as market alternatives can vanish inside days.
TRUMP Coin Frenzy Drains Liquidity
In the meantime, many buyers had anticipated that Donald Trump’s election victory would set off a brand new bull run for cryptocurrencies. Nonetheless, somewhat than boosting the market, the Official Trump (TRUMP) meme coin frenzy drained liquidity, leaving merchants shocked.
Crypto analyst Otto Suwen likened the present situations to the 2022-2023 bear market.
Suwen defined that many altcoins skilled a powerful rally following Trump’s election victory. But, the momentum light shortly.
Merchants initially seen the pullback as a pure retrace. Furthermore, by early 2025, expectations have been excessive for a seasonal surge, with retail buyers rotating between completely different meme coin tendencies. Nonetheless, the launch of the TRUMP token considerably impacted on-chain liquidity.
Merchants anticipated that income from TRUMP could be reinvested into different belongings. Nonetheless, the next launch of Melania Meme (MELANIA) created additional turmoil.
“Alts are massacred throughout the board. This isn’t your conventional 50% retrace both. It’s -90% on so many well-liked picks. Quantity is wanting bleak as properly. We went from alt season being imminent to down solely with a flip of a change,” Suwen described.
He added that Bitcoin (BTC) has but to expertise a serious correction, elevating considerations about extra volatility.
“Whereas I don’t suppose we’ve topped but, this has been the toughest cycle I’ve skilled in 8 years,” he concluded.
This sentiment aligns with different analysts’ considerations.
“We wished Trump to Pump the marketplace for us and be a Crypto legend. As an alternative he and his spouse launched shitcoin, Dumped on all of Crypto buyers, now imposed Tarrif on imports and Dumping the market additional,” one person wrote on X.
President Trump lately introduced a 25% tariff on imports from Mexico and Canada and a ten% tariff on items from China. The speedy market response was extreme.
The full market capitalization misplaced roughly $300 billion in worth in a single day. Nonetheless, the president later determined to delay a few of these measures.
The mix of aggressive commerce insurance policies and volatility within the cryptocurrency market has left buyers on edge, fueling considerations concerning the sustainability of the present bull cycle.
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