Bitcoin Has Lost Its Growth Since Early 2025
  • Home
  • News
  • Bitcoin has Lost its Growth since Early 2025. What Happened in the Cryptocurrency Market?
By Kima A. profile image Kima A.
3 min read

Bitcoin has Lost its Growth since Early 2025. What Happened in the Cryptocurrency Market?

The price of the first cryptocurrency updated its lowest since the end of December, falling below $93,000.

The price of the first cryptocurrency updated its lowest since the end of December, falling below $93,000.

The Bitcoin (BTC) rate has lost the growth it has gained since the beginning of the year. In the last day, the price of the asset fell to $92.5 thousand at one point, which happened for the first time since 31 December 2024. In 24 hours, BTC fell by 2.5 per cent. As of 11 a.m., Bitcoin is trading at around $93.4 thousand.

Bitcoin
Bitcoin

In the first 9 days of 2025, the price of the first cryptocurrency rose to $102.5k in the wake of Congress' approval of the US election results on 6 January, before falling below $100k after the release of macroeconomic data in the US. Despite the positive sentiment among market participants related to the approaching inauguration of Donald Trump, analysts note that investor concerns about the continuation of inflation and interest rates in the US remain high.

Bitcoin's market share is 57.86 per cent, according to TradingView as of 9 January. The currency's capitalisation is $1.86 trillion. Bitcoin has lost 3% in value over the month.

The total market capitalisation of cryptocurrencies has fallen 2.8% in the past 24 hours to $3.4 trillion. The trading volume of digital currencies reached $188 billion.

In the past 24 hours, the top 10 cryptocurrencies by capitalisation showed a decline, with the exception of Ripple's XRP (XRP), which rose 1.5 per cent. XRP showed steady growth thanks to the dinner between Ripple CEO Brad Garlinghouse, Chief Legal Officer Stuart Alderotti, and Trump. In addition, Ripple's president Monica Long said in an interview with Bloomberg that an exchange-traded fund (ETF) on XRP could soon be launched.

Cardano (ADA) and Dogecoin (DOGE) posted the biggest losses among the top 10 cryptocurrencies. They lost 5.8% and 3.3% respectively.

Dogecoin
Dogecoin

Of the top 100 cryptocurrencies, the anonymous cryptocurrency Monero (XMR) has seen the most growth, rising 4.1 per cent in one day. The AI project token ai16z (AI16Z), on the other hand, suffered the most significant decline, at 21%.

In the context of cryptocurrency's one-day decline, exchange platforms liquidated the positions of 163 thousand traders with a total value of $475 million. The cryptocurrency market's fear and greed index dropped from the 'extreme greed' range to the 'greed' zone. The indicator is now at 69 points out of 100. The decrease in the index signals that market participants have become more cautious about investing in risky assets.

What Influenced this Downturn

Several factors contributed to this downturn, including:

Regulatory Repercussions

Governments around the world have intensified their control over cryptocurrencies, introducing stricter regulations and enforcement measures. Major economies, such as the United States and the European Union, have introduced new tax compliance requirements and anti-money laundering (AML) policies, affecting investor confidence.

Market Saturation

The cryptocurrency market has seen an influx of alternative cryptocurrencies and decentralised finance projects (DeFi). This diversification has diverted attention away from Bitcoin, leading to a reduction in trading volumes and a shift in investors' focus towards more innovative or higher-yielding assets.

Macroeconomic Factors

Global economic uncertainty, high inflation rates and rising interest rates have also played a role. Traditional financial instruments have begun to regain appeal, driving institutional investors back into bonds and equities, further weakening Bitcoin's momentum.

Technological Challenges

Bitcoin's scalability issues and high transaction fees remain a significant concern. While other blockchain networks, such as Ethereum and Solana, have made great strides in upgrading their infrastructure, Bitcoin has lagged behind, limiting its adaptability in the face of evolving market demands.

Market Sentiment and Speculation

Retail investors' bearish sentiment, fuelled by high-profile cryptocurrency company bankruptcies and lingering scepticism after the 2022-2023 crashes, has contributed to the decline in demand. Speculation has shifted to other assets perceived as more promising or stable.

Linkedin - Spaziocrypto
Linkedin - Spaziocrypto
By Kima A. profile image Kima A.
Updated on
News Crypto