Regardless of the prevailing narrative that the Bitcoin and the broader crypto market is in a bull run, latest information suggests traders have gotten more and more risk-averse.
In an X put up on Tuesday, February 11, crypto analytics platform Glassnode shared information highlighting that Bitcoin‘s market cap hit an area peak of $2.1 trillion on January 21, whereas altcoins, excluding Ethereum and stablecoins, noticed their peak nicely over a month earlier than at $1.03 trillion on December 8.
On the identical time, the agency famous that Bitcoin’s market cap has since dropped 8.2%, whereas the market caps of those altcoins have declined by a staggering 29.8%.
Glassnode famous that the distinction confirmed “a shift in capital preferences.”
Certainly, the information signifies danger aversion and a flight to relative stability in Bitcoin, which is extra established and traditionally much less risky than altcoins.
The shift comes amid quickly altering macroeconomic situations.
For one, earlier than mid-December 2024, traders had been anticipating a fast loosening of financial coverage in 2025, hoping that some extra capital would bolster the rally amongst crypto belongings.
These hopes had been, nevertheless, dashed. In December 2024, the U.S. Federal Reserve projected fewer than-expected price cuts for 2025, arguing that inflation continues to linger.
The scenario has been additional sophisticated by commerce warfare considerations, which have risen amid President Donald Trump’s largely sudden barrage of tariffs in latest weeks.
Nonetheless, most analysts stay optimistic that the crypto bull market is much from over. One purpose for that is the Trump administration’s considerably pro-crypto leanings.
From looming regulatory overhauls to talks of a strategic crypto stockpile or Bitcoin reserve, the administration appears set to help the trade like none earlier than it, sparking hopes of long-term optimistic market results.
As observers await these results, the market continues to idle, with Bitcoin buying and selling in a decent vary slightly below the $100,000 worth level.
DisClamier: This content material is informational and shouldn’t be thought of monetary recommendation. The views expressed on this article could embrace the writer’s private opinions and don’t mirror The Crypto Primary opinion. Readers are inspired to do thorough analysis earlier than making any funding selections. The Crypto Primary is just not accountable for any monetary losses.
