Altcoin Market Plunges 40%, Erasing Post-Election Gains

Edgen Crypto

·Feb 21 2026, 21:17

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Key Takeaways

The cryptocurrency market has erased nearly all gains achieved since the November 2024 U.S. election. A major market crash in October 2025 initiated a downtrend that has seen the altcoin market cap fall by 40% from its peak, with Bitcoin and Ether shedding over 50% and 60% respectively, driving investor sentiment to record lows.

Altcoin Market Cap Collapses: The Total3 market cap, which excludes BTC and ETH, has plummeted approximately 40% from its $1.19 trillion peak in October 2025 to $713 billion, returning to levels last seen in November 2024.
Bitcoin and Ether Lead Decline: Major assets have suffered steep losses, with Bitcoin dropping over 50% to a low of $60,000 and Ether falling roughly 60% from its August 2025 all-time high of nearly $5,000.
Investor Sentiment Hits Record Lows: The Crypto Fear & Greed Index is at 14, indicating "extreme fear," after hitting a record low of 5 on February 5, underscoring deep pessimism among market participants.

Altcoin Market Erases 91% Post-Election Rally

The cryptocurrency market, excluding Bitcoin and Ether, has completed a full round trip, wiping out the dramatic gains that followed the U.S. presidential election on November 5, 2024. The Total3 market cap, a key metric for altcoin valuation, had surged over 91% from approximately $600 billion to a high of $1.16 trillion by December 2024. After trading sideways for much of 2025, the market hit a final peak of $1.19 trillion in October 2025.

A historic market crash then broke the sector's uptrend, triggering a severe downturn. At the time of publication, the Total3 market cap stands at approximately $713 billion, a 40% decline from its October peak. This valuation brings the altcoin market back to the same level it held on November 10, 2024, erasing more than a year's worth of gains.

Bitcoin and Ether Plummet Over 50% as Fear Dominates

Market leaders Bitcoin and Ether have also experienced massive drawdowns. Bitcoin's price shed over 50% from its peak, hitting a low of approximately $60,000 before a minor recovery to $68,000. Ether fared worse, plummeting about 60% from its all-time high of nearly $5,000, which was reached in August 2025.

This price collapse has pushed investor sentiment to multi-year lows. The Fear & Greed Index, a key sentiment tracker, registered a 14, a score indicating "extreme fear." This follows a record low of 5 recorded on February 5, the lowest level documented by CoinMarketCap's index, signaling deep capitulation among investors.