Recent Volatility in the Cryptocurrency Market Causes Confusion Among Investors
The cryptocurrency market has shown unexpected volatility recently, leading to increased confusion among investors.
Despite positive policies from the U.S. government and President Trump's pro-cryptocurrency stance, Bitcoin and major cryptocurrencies have failed to maintain an upward trend.
Unpredictable Trends in the Cryptocurrency Market
📉 Changes in the Crypto Fear & Greed Index
On February 5th, the index plummeted from 72 (Greed) to 54 (Neutral) in just one day, reflecting growing uncertainty in the market.
📉 Debate Over Bitcoin's Undervaluation
Trader The Bitcoin Therapist stated:
"Bitcoin is undervalued by at least $50,000 to $100,000, and a strong price reassessment (surge) is expected."
📉 Market Response Following Trump's Victory
At the end of 2024, President Trump's election and the potential for Bitcoin to be considered a national reserve asset in the United States raised optimistic projections. However, the market is currently behaving contrary to expectations.
Macro Economic Factors and Bitcoin's Volatility
📌 Bitcoin's Surge and Correction
- ✅ On January 20th (immediately after Trump's inauguration), Bitcoin broke its all-time high of $109,000.
- ✅ On February 3rd, the announcement of Trump's new tariff policy led to the largest liquidation event in history ($2.24 billion).
- ✅ Despite the subsequent withdrawal of tariffs on Canada and Mexico, Bitcoin failed to maintain the $100,000 level.
📌 Increase in Bitcoin's Market Share
- ✅ Bitcoin's market share currently exceeds 61.47%.
- ✅ Analysts anticipated the arrival of an altcoin season, but instead, Bitcoin's market share increased.
📌 Reactions from Key Industry Figures
💬 Michaël van de Poppe (CEO of MN Capital):
"This is not the end of the market, but just the beginning."
💬 Eric Trump (Son of President Trump):
"Buy Ethereum." (Surprising tweet on X)
Conclusion: Where Will the Cryptocurrency Market Go?
- ✅ Bitcoin is entering a phase of short-term correction.
- ✅ Changes in Trump's policies will act as a key variable for the market.
- ✅ The increase in Bitcoin's market share raises the possibility of a long-term bullish outlook.
Experts believe that this correction is likely a temporary phenomenon, and a strong rebound could be forthcoming. However, closely analyzing the impact of global economic and political factors on the market is becoming increasingly important. 🚀
This article does not constitute investment advice or financial recommendations. Cryptocurrency investments carry high risks, and the responsibility for any investment decisions lies solely with the investor.
