Crypto Lost $2.2 Trillion Since October As Bitcoin Erases Post-Election Rally

Bitcoin erased its post-election rally by Thursday morning, as crypto fell around 50% below October levels, the Kobeissi Letter said.

• The crypto market is down about 50% since October, erasing about $2.2 trillion in market cap, The Kobeissi Letter said.
• Bitcoin is down about 10% since Trump’s election, with broad losses across major tokens shown in the post.
• They flagged the October 2025 liquidation spike and said market depth remains more than 30% below its October peak.

Bitcoin (BTC) erased its post-election rally on Thursday, according to The Kobeissi Letter, as a broader crypto sell-off left the market down about 50% since October last year.

The Kobeissi Letter explained on X that the crypto market’s decline since last October has erased about $2.2 trillion in total market capitalization, after Bitcoin reached an all-time high that same month. It added that Bitcoin is now down about 10% since Trump’s election, describing the move as a full reversal of the post-election advance.

According to the Kobeissi Letter, the selloff was not limited to crypto. The selling pressure spread into other asset classes, with sharp declines in large-cap technology stocks, even when earnings were strong. Microsoft (MSFT) went down by 10.53%, Nvidia (NVDA) was down by 10.7%, and Google (GOOGL/GOOG) was down by 2.66%. It pointed out that the “liquidation gaps” in crypto were carrying over into equities. 

Bitcoin’s price was trading at $65,030.20, down by 9.25% in 24 hours. On Stocktwits, retail sentiment around Bitcoin remained in ‘extremely bearish’ territory, while chatter levels remained ‘extremely high’ over the past day.

Liquidations And Market Depth Since October

A chart shared by the global markets commentator showed that 6th October marked a record high for total crypto market value at about $4.3 trillion and pointed to 10th October as a “record crypto liquidation.” This marked the biggest liquidation event in crypto’s history, with roughly $19.5 billion in leveraged positions being wiped out over 24 hours, dwarfing the FTX collapse in late 2022. 

In the same chart, The Kobessi Letters marked 5th February as the point when crypto “erased” about $2 trillion in market cap, with the market cap reading around $2.34 trillion.

The Kobeissi Letter further noted that the decline on Thursday was “particularly noteworthy” because Bitcoin fell more than $9,000 on the day and selling pressure was “constant.” It added that, at times, Bitcoin dropped more than $2,000 in a matter of minutes. The Kobeissi Letter also shared a five-minute Bitcoin-U.S. dollar chart highlighting three intraday “gaps,” with the price shown around $63,338.

The thread also mentioned that Bitcoin traded in a range between mid-November and mid-January before breaking lower around the middle of January this year. According to the posts, about $10 billion in leveraged positions have been liquidated in the last two weeks. 

The account cited weaker market depth, which it described as the capital available to absorb large orders, saying it remains more than 30% below its October peak. 

Finally, The Kobeissi Letter addressed where a crypto bottom could form. It said a crypto bottom would come when “structural liquidity” is restored, alongside capitulation in price and leverage and “maximum bearish sentiment,” adding that the market appears “somewhat near that point.” 

Read also: ‘Worst Crypto Winter Ever?’ – Analysts Blame Everything From The Epstein Files To Capital Outflows For Bitcoin’s Drop To $65K

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