The crypto market kicked off 2025 on an optimistic note, mostly fueled by new expectations stemming from the current US administration inaugurated on January 20.
The Rise and Fall of the Crypto Market in January
The overall crypto market reached a peak on January 7, hitting $3.76 trillion in market cap following a rebound from the December slump caused by the Federal Reserve’s hints of slowing down interest rate cuts this year. The recovery was mainly triggered by US President Donald Trump’s executive orders, including the creation of a work group for establishing a Strategic Bitcoin Reserve and clearer regulations for digital assets. However, market recovery halted after the emergence of the low-cost AI model by the Chinese company DeepSeek, which triggered sell-offs.
Overall Crypto Market Performance in January 2025
According to Crypto Street, the overall crypto market recorded a 4.3% growth last month, showing significant recovery from December's decline. Bitcoin and some altcoins recorded positive gains despite market volatility. On January 20, Bitcoin reached its ATH above $108,000.
Trends and Developments Worth Watching in February 2025
Key factors likely to influence the market in February include macroeconomic and regulatory factors, the outlook for the DeFi sector, and NFT market projections. Investors' attention will also be drawn to upcoming crypto events and major token unlocks, such as the Arabian Blockchain Expo in Dubai and ETHDenver 2025.
The analysis suggests that in February 2025, various factors will influence the crypto market, ranging from federal economic measures to the development of new technological initiatives. Changes in market sentiment and activity in various market sectors are expected.
