Possibilities Emerge as TRUMP Coin Frenzy Affects Crypto Market and Liquidity Post-Election

• Despite a bullish market sentiment, most cryptocurrencies on Binance trade below pre-election prices.

• Nearly 80% of coins hit their peak between December 3–9, highlighting a highly correlated market cycle.

• The TRUMP meme coin frenzy drained liquidity, while new tariffs triggered a $300 billion market cap drop.

A recent analysis shows that 70% of cryptocurrencies on the crypto exchange Binance are now trading below their pre-US election prices.

Election Hype Fades as Cryptocurrencies Trade Lower

In an X post, analyst ltrd examined price movements of cryptocurrencies before and after the elections, offering a clearer picture of actual market performance.

“Nearly 70% of coins are now trading lower than they were before the elections!” the post read.

While some coins surged significantly, the majority have struggled to maintain their value. The analyst outlined Hedera (HBAR), XRP (XRP), Mantra (OM), Stellar (XLM), and VeThor (VTHO) as the top-performing assets.

In contrast, some assets experienced sharp declines. This list included Nerio (NEIRO) and THORChain (RUNE), BOOK OF MEME (BOME), ConstitutionDAO (PEOPLE), and dogwifhat (WIF).

One of the most interesting revelations from the analyst’s data was the timing of market peaks.

“It turns out the crucial period for traders was between December 3rd and December 9th—almost 80% of coins hit their peak during this short window,” he examined.

Percentage of Instruments That Reached Their Highest Price. Source: X/ltrd

According to the analyst, this narrow window suggested that the market is highly correlated, with most tokens reaching their peak within a short timeframe. Furthermore, he also emphasized the importance of timing in trading, as market opportunities can vanish within days.

TRUMP Coin Frenzy Drains Liquidity

Meanwhile, many investors had expected that Donald Trump’s election victory would trigger a new bull run for cryptocurrencies. However, rather than boosting the market, the Official Trump (TRUMP) meme coin frenzy drained liquidity, leaving traders surprised.

Crypto analyst Otto Suwen likened the current conditions to the 2022-2023 bear market.

Suwen explained that many altcoins experienced a strong rally following Trump’s election victory. Yet, the momentum faded quickly.

Traders initially viewed the pullback as a natural retrace. Moreover, by early 2025, expectations were high for a seasonal surge, with retail investors rotating between different meme coin trends. However, the launch of the TRUMP token significantly impacted on-chain liquidity.

Traders anticipated that profits from TRUMP would be reinvested into other assets. Nonetheless, the subsequent launch of Melania Meme (MELANIA) created further turmoil.

“Alts are massacred across the board. This isn’t your traditional 50% retrace either. It’s -90% on so many popular picks. Volume is looking bleak as well. We went from alt season being imminent to down only with a flip of a switch,” Suwen described.

He added that Bitcoin (BTC) has yet to experience a major correction, raising concerns about additional volatility.

“While I don’t think we have topped yet, this has been the hardest cycle I’ve experienced in 8 years,” he concluded.

This sentiment aligns with other analysts’ concerns.

“We wanted Trump to Pump the market for us and be a Crypto legend. Instead he and his wife launched shitcoin, Dumped on all of Crypto investors, now imposed Tarrif on imports and Dumping the market further,” one user wrote on X.

President Trump recently announced a 25% tariff on imports from Mexico and Canada and a 10% tariff on goods from China. The immediate market reaction was severe.

The total market capitalization lost approximately $300 billion in value overnight. Nevertheless, the president later decided to delay some of these measures.

The combination of aggressive trade policies and volatility in the cryptocurrency market has left investors on edge, fueling concerns about the sustainability of the current bull cycle.

Conclusion

The current state of the cryptocurrency market underscores a critical dissonance between bullish sentiment and actual trading performance. Investors must navigate a complex landscape where external factors, like political developments and economic tariffs, can impact market dynamics significantly. Monitoring these conditions, along with the timing of investments, may be essential for making informed decisions in the coming weeks.