The crypto market is not known for stability, but current price movements have even seasoned traders confused. Even though there have been increasing signs of increased support for cryptocurrency from the U.SThe increasing price of Bitcoin after the government change and Donald Trump’s election cannot be maintained. Investors say that the pattern in the market has lost its logic. Predictions at this time are becoming increasingly difficult to make.
Price Struggles of Bitcoin and Market Sentiment
Bitcoin touched a record of over $109,000 on 20 January 2025 during the inauguration of President Trump but has been volatile since then, unable to sustain its levels above $100,000. While some traders feel that it is undervalued by $50,000 to $100,000 as market participants have not factored in positive news, the Crypto Fear & Greed Index declined from 72 (Greed) to 54 (Neutral) on February 5 signaling waning investor confidence.
Delay of Altcoin Season by Bitcoin Dominance
Altcoin season is supposed to kick-start once bitcoin reaches its expected peak in the early months of 2025. However, it has busted all expectations to date at 61.47% instead of 60%. Thus, delaying the much-needed altcoin season, leaving everyone confused about its arrival.
1/ 🚀 Crypto markets are spiraling into confusion!
— ISD 🇬🇧 (@ISD_LTD) February 6, 2025
Traders say logic is out the window as Bitcoin struggles below $100K despite bullish political moves. What’s behind the madness? Let’s break it down! 👇 #Crypto #Bitcoin pic.twitter.com/LumAkcf6Jg
Big Liquidations and Market Volatility
One of the biggest shocking market events was on February 3, 2025, when controversy surrounding Trump’s intended tariffs on Canada, Mexico, and China led to the largest liquidation ever in the history of crypto. Over $2.24 billion-possibly up to $10 billion-was deleted in a single night Even as Trump eventually took off the tariffs meant for Canada and Mexico, Bitcoin has not fully regained grounds, which has further confused the traders.
Is the Crypto Industry Just Beginning?
Some analysts, like Michaël van de Poppe, the founder of MN Capital, believe that the market is still in its infancy despite the uncertainty. While some fear that Bitcoin’s peak has already passed, others argue that long-term growth remains ahead.
This recent volatility in the crypto market has made traders feel frustrated, with Bitcoin not moving along the trend, even though good news seems to be popping out. Despite a cautious sentiment being seen in the market, savvy investors understand that volatility is the game. While Bitcoin dominance at unexpected highs and altcoin season delayed, these coming months are going to tell the market whether it’s a big move next. In this unpredictable scenario, staying updated and managing risk will be the best strategies.
