For the first time this year, Ethereum has dropped below $2,000, reflecting significant volatility in the cryptocurrency ecosystem.
Current State of the Crypto Market
Bitcoin's price currently stands at $78,220, down 5.92% over the past 24 hours, while Ethereum is trading at $1,901.36 after a 5.45% decline. Other altcoins like XRP, Solana, and Cardano are also experiencing significant selloffs. Cardano recorded a substantial drop of 6.18%, whereas Solana faced liquidations amounting to $34 million in 24 hours.
Reasons Behind the Market Decline
The Kobeissi Letter analysis shows that the crypto and S&P 500 have lost a combined $5.5 trillion over the past two months. The selloff is attributed to an anticipated trade war on February 1, 2025. A sudden shift in risk appetite has driven the market from greed to fear.
Strategic Plans for 2025
The Kobeissi Letter indicates that strategic shifts are set to broaden. The publication forecasts that Dow Jones could experience a 1,000-point surge, while Bitcoin and Ethereum prices might also see an increase.
The decline in cryptocurrency prices underscores current market instability, but expected strategic changes might lead to a recovery.
