As the market continues to fall, questions about the future prospects of the cryptocurrency sector arise.
Current Market Situation
Since the start of 2025, the cryptocurrency market capitalization has dropped from $3.20 trillion to $2.71 trillion, marking a decline of 12.24% over a month and 17.28% over the week. The Fear and Greed Index started the year at a neutral score of 49, with Bitcoin priced at $93,425. Bearish sentiment dominates due to expiring futures and options, and it's unclear if the market can reach the $4 trillion mark by year-end.
Factors Influencing Fear and Greed Index
Key factors affecting the Fear and Greed Index include major cryptocurrency prices, decisions by large nations such as the US, and trading volume changes. Between October 2024 and February 2025, the market showed significant growth but faded in recent weeks, with liquidations surpassing $1 billion.
Bitcoin's Market Dominance
Despite bearish trends, Bitcoin's dominance has risen by 5.39% in the quarter, 6.21% over the last six months, and more than 14% over the past year. Bitcoin maintains its market position, while Ethereum continues to lose capital and Total Value Locked (TVL). Despite the decline, Bitcoin's price reached $109k, sparking speculation of hitting $120k by the end of the first quarter of 2025.
Despite observed fluctuations, the cryptocurrency market remains a focal point, with its future development contingent on multiple influencing factors.
