February was a challenging month for the crypto market, with sharp declines in Bitcoin and Ethereum. We examine the causes and potential consequences of these changes.
Crypto Market in February: Turbulence and Price Declines
February marked significant changes in the crypto market: Bitcoin's price fell to its 2021 levels of $86K. Ethereum also faced substantial issues, dropping below $2,500 following a massive hack on Bybit, attributed to North Korea's Lazarus group, triggering a 25% price crash.
Bearish Signals and Further Decline Prospects
Current trading data for Ethereum highlights a deepening bearish trend. Breaking through key support levels once again demonstrates vulnerability to overall economic conditions. If the pattern from April and August events repeats, the price could drop below $1,000 before potentially rebounding under favorable macroeconomic circumstances. The Federal Reserve's intervention in macroeconomy significantly affects these forecasts.
Is Ethereum Recovery Possible?
A potential shift in the Fed's monetary policy could provide the necessary boost for Ethereum's recovery. Historically, this cryptocurrency benefits from liquidity increases driven by QE (quantitative easing). Analysts note that if new stimulus measures are introduced by March 2025, ETH could see substantial gains. However, Ethereum remains under pressure; if its price holds above $2,000, recovery to the $3,500–$4,000 range is possible.
Despite the serious challenges facing Ethereum, there are still chances for recovery. However, several factors need to align, including changes in monetary policy. Investors continue to cautiously monitor developments, trying to assess potential prospects and risks.
