Crypto market retraces almost all 2024-2025 US election pump gains
Summary
In October, the crypto market faced a historic crash, disrupting its upward trend and significantly diminishing investor sentiment. This downturn highlights the volatility and unpredictability inherent in cryptocurrency investments, raising concerns among market participants.
Key Insights
What is a 'US election pump' in the crypto market?
The 'US election pump' refers to the sharp rise in cryptocurrency prices following the 2024 US presidential election, likely driven by expectations of favorable policies under President Trump, with Bitcoin surging from around $60,000 in late 2024 to over $122,000 by October 2025 before the crash retraced most gains.
What caused the October crypto market crash that erased election gains?
The crash, occurring around October 10, 2025, was triggered by multiple factors including US tariffs on China imposed by President Trump, high leverage leading to over $19 billion in liquidations, vanishing liquidity, and earlier geopolitical tensions like Middle East conflicts, causing Bitcoin to drop from $122,000 to $105,000 and wiping out nearly $800 billion in market value.