The crypto market continues its decline this month, which started in the fourth quarter of last year. Both Bitcoin and Ethereum have significantly dropped, and other altcoins are also showing a downtrend.
Decline in the Crypto Market
Bitcoin dropped from an all-time high of $109,300 in January to $82,000. Ethereum has slumped from $4,100 in November to $1,800. Other altcoins, like Solana, Cardano, and Polkadot, have fallen by double digits from their highest levels in 2024.
Economic Trends and Their Impact
Cryptocurrencies have largely moved in sync with the U.S. stock market, which has entered a correction. Meanwhile, the Nasdaq 100, Russell 2000, S&P 500, and Dow Jones indices have also declined by double digits. In contrast, gold has been steadily rising, reaching an all-time high of $3,120.
Investment Future and Gold's Role
The rise in gold prices and the decline in stocks and cryptocurrencies indicate that investors view gold as a superior safe-haven asset. Trump's tariff policies may further influence the market, contributing to a recession and rate cuts, potentially driving renewed demand for risk assets.
The crypto market remains under pressure, but the situation could change with ongoing economic shifts and policies related to the dollar and tariffs.
