Crypto Market Turmoil: Post-Election Surge Fades, $300B Wiped Out

The cryptocurrency market has been grappling with a series of developments post-election, with the TRUMP coin frenzy and new tariffs significantly impacting liquidity and market performance. Despite a bullish market sentiment, the majority of cryptocurrencies on Binance are trading below their pre-election prices, highlighting a highly correlated market cycle.

An analysis of cryptocurrency price movements before and after the elections revealed that nearly 70% of coins are now trading lower than they were before the elections. While some coins, such as Hedera (HBAR), XRP (XRP), Mantra (OM), Stellar (XLM), and VeThor (VTHO), experienced significant surges, the majority have struggled to maintain their value. Conversely, assets like Nerio (NEIRO) and THORChain (RUNE), BOOK OF MEME (BOME), ConstitutionDAO (PEOPLE), and dogwifhat (WIF) experienced sharp declines.

One of the most notable revelations from the analysis was the timing of market peaks. It turns out that almost 80% of coins hit their peak between December 3rd and December 9th, suggesting a highly correlated market with most tokens reaching their peak within a short timeframe. This narrow window emphasizes the importance of timing in trading, as market opportunities can vanish within days.

Many investors had anticipated that Donald Trump's election victory would trigger a new bull run for cryptocurrencies. However, the Official Trump (TRUMP) meme coin frenzy drained liquidity, leaving traders surprised. The launch of the TRUMP token significantly impacted on-chain liquidity, and the subsequent launch of Melania Meme (MELANIA) created further turmoil. This led to a massacre of altcoins across the board, with volume looking bleak. Bitcoin (BTC) has yet to experience a major correction, raising concerns about additional volatility.

The combination of aggressive trade policies, such as the recent 25% tariff on imports from Mexico and Canada and a 10% tariff on goods from China, and volatility in the cryptocurrency market has left investors on edge. The total market capitalization lost approximately $300 billion in value overnight, fueling concerns about the sustainability of the current bull cycle.

The current state of the cryptocurrency market underscores a critical dissonance between bullish sentiment and actual