The cryptocurrency market is experiencing instability with declines in Bitcoin and Ether coupled with economic risks.
Crypto Decline: Bitcoin and Ether
On Monday, the cryptocurrency market showed a downturn, with Bitcoin falling below $91,015, marking a 2% drop over the past day. Ether also saw a significant decline, dropping 5.9%. This followed a major hack on the ByBit platform, which resulted in the theft of over 446,000 tokens valued at more than $1.4 billion.
Solana's Inflation and Token Unlocks Impact
Among major cryptocurrencies, Solana was the worst performer, plummeting nearly 10% in the past 24 hours and 41% over the past month. This was influenced by SOL inflation, related to changes in the fee structure, and upcoming token unlocks in March. These factors continue to put pressure on the cryptocurrency.
Economic Threats and the Labor Market
Neil Dutta, head of economic research at Renaissance Macro Research, noted growing risks in the US economy, including a weakening labor market and declining real incomes. Dutta emphasized that in 2025, surprises are more likely to be on the downside.
The current state of the cryptocurrency market and economic risks underscore the importance of monitoring changes and adapting strategies.
