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This Week’s Summary
Crypto Trends for the Week of Jan. 27 – Feb. 2, 2025: Market Analysis and Performance
The cryptocurrency market lost its positive momentum in less than two weeks since the official investiture of Donald Trump as the 47th President of the United States. Trump helped Bitcoin and most cryptocurrencies skyrocket, and then his actions brought them back into the red.More precisely, Trump’s complex take on external politics and historic economic partners like Mexico and Canada threw many financial markets into turmoil. The cryptocurrency market is not an exception, and as a result, the market capitalization dropped by nearly $300 billion, reaching around $3.33 trillion.Bitcoin started trading a little above $100,000 during the week. In fact, the king of cryptocurrencies surged spectacularly for two straight days to reach the $106,000 area. Unfortunately, its rise did not last long as external factors brought it back down below the $100,000 mark.Ethereum lost over 8% of its value after following the downtrend it started last week. The second crypto in command now appears closer to dropping below the $3,000 threshold than ever this year. Such an outcome would be the first time since September that ETH would be under the psychologically daunting $3,000 level.
Altcoins & DeFi
Most altcoins have been seen trading in the red, with very few exceptions. For example, XRP decreased by 12%, taking its value to around $2.71. Elsewhere, Solana moved down by 18%, BNB by 7%, Cardano by 15%, Avalanche by 22%, Stellar by 12%, and Sui by 16%.The memecoins have not been faring any better, either. For instance, Dogecoin fell down by 17%, Shiba Inu by 14%, and Pepecoin by 23%.The Metaverse sector also witnessed some notable movements over the past week. For instance, Axie Infinity moved down by 20%, Floki by 19%, Render by 30%, and Stacks by 19%. Moreover, Virtuals decreased by 37%, The Sandbox by 21%, Decentraland by 20%, and MultiversX by 17%.The DeFi sector lost nearly $10 billion from the total value in locked protocols (TVL), recently seen standing at around $114.95 billion.
What’s in the News?
A new artificial intelligence software, DeepSeek, has entered the AI revolution by proposing better performance at lower costs than most other AI software, including ChatGPT. This event means that AI software does not necessarily require hefty NVIDIA CPUs.The news caused a crash for some hardware and software companies, including a double-digit dump for NVIDIA. Moreover, these events rippled across all financial markets, including the cryptocurrency sector.
Next Week’s Crypto Market Forecast
The cryptocurrency market has certainly seen better days. Most cryptocurrencies have been reeling following the acute turn in external politics taken by the US. Additionally, the recent events in the AI sector haven’t helped. Thus, a general downtrend has taken over the cryptocurrency market along with other markets.
About the Author
Born and raised in Romania and currently living in Spain, Iulian discovered a knack for writing from a tender age, and even won some minor awards for fiction that didn’t pay much.Iulian became a content writer in 2011, and he is still doing it to some degree of success today. He is currently specialized in cryptocurrencies, technology, online marketing, and social media. In his free time, Iulian likes reading, traveling, and watching sports. His dream is to see Bitcoin reach $100,000, just so he can tell his friends “I told you so.”More By This Author:XRP At Critical Juncture As Price Restests 21 EMABitcoin Price Must Hold Above $97K To Sustain Momentum – MetricsBitcoin Eyes $108K: Can Bulls Sustain Momentum Against Bearish Signals?
