Crypto Market Sheds $900B as Post-Election Volatility and Trump Media Bitcoin Sales Weigh
The post-election selloff has been brutal for crypto. Markets had priced a Democratic victory, with odds reaching 99%, yet crypto still sold off sharply. Total market capitalization has fallen back to mid-September levels, capping five straight weeks of losses and wiping out nearly $900 billion. The result is a textbook liquidity sweep, and the downside may not be over.
Coinglass data shows nearly $1 billion in positions were liquidated on Sept. 5, the largest single-day wipeout since a $2 billion short squeeze in mid-August. Nearly 80% of liquidations came from longs, meaning bullish traders were heavily caught offside as the market moved lower.
The selloff was not crypto-specific. The Nasdaq 100 suffered its largest one-day loss since the pandemic, while the S&P 500 lost $3 trillion. The declines came 24 hours after the Dow surged 1,600 points when Democrats swept the midterms, a sign of an abrupt post-election shift in sentiment. President Donald Trump said on Truth Social it was one of the "worst days in history" for the stock market.
Crypto faces fresh capitulation risks as sentiment weakens. Fear in the market now centers less on the election itself and more on Trump. Bitcoin is down almost 30% from its $126,000 peak, even with regulatory progress through the GENIUS Act, greater tokenization, and increased stablecoin adoption in traditional finance. Reports that Trump Media sold $343 million worth of Bitcoin have added to concerns about institutional selling and created more fear around Trump, weakening the bullish sentiment that initially drove the post-election crypto rally.
Against this backdrop, the crypto wipeout could be more than a reaction to broader market weakness. Traditional markets are digesting how the election will affect AI, while crypto faces its own market-specific headwinds. Alongside reported Bitcoin sales by Trump Media, ETF outflows continue. With prices back at mid-September levels, crypto could be entering a more severe capitulation phase.
Crypto has lost nearly $900 billion in market value, with Bitcoin down almost 30% from its $126,000 peak. Reported Bitcoin sales by Trump Media and continued ETF outflows are adding selling pressure, raising fears of deeper capitulation.
