I don't think that this is entirely accurate. I know that cider was very popular in the Colonies, and late the United States, during the 18th century, and into the early 19th century. Certainly, late-18th century sources, like the Autobiography of Benjmain Franklin, say that hard cider was considered and essential part of a good meal in 18th-century America.

However, by the mid-19th century, beer and whiskey had overtaken cider in popularity, for a variety of reasons that I don't understand. The immigration of large numbers of Germans and other central Europeans led to the introduction of new beers styles, like lagers and pilsners. Additionally, urbanization led to increased demand for alcoholic beverages that could be brewed on demand (like beer) or stored for long periods of time and transported long distances (like whiskey). That said, you are correct that it was the Volstead Act and Prohibiton that lead to large changes in American's drinking habits, as low-proof beverages became hard to obtain commercially. Deprived of a market, most of the major cider presses went out of business, or switched to the production of other products, like applesauce.

Source: The American Cider Book: The Story of America's Natural Beverage by Vrest Orton