In a move that has the crypto world buzzing, El Salvador’s pursuit of a substantial $1.4 billion loan from the International Monetary Fund (IMF) has come with strings attached – and these strings are tightly wound around Bitcoin . Yes, you heard it right. The IMF is laying down some serious ground rules regarding El Salvador’s favorite cryptocurrency, demanding significant changes to its Bitcoin strategy as a condition for financial assistance. Let’s dive into the details of this fascinating development and what it means for El Salvador and the broader crypto landscape. Why is the IMF imposing strict conditions on El Salvador’s Bitcoin adoption? The IMF’s concerns aren’t exactly new. Since El Salvador adopted Bitcoin as legal tender in 2021, the international financial institution has voiced worries about the risks associated with cryptocurrency adoption, particularly its volatility and potential impact on financial stability. For a nation seeking a massive IMF loan to bolster its economy, these concerns have now translated into concrete demands. The core issue? The IMF wants to ensure that public funds are managed responsibly and that the risks associated with Bitcoin are mitigated. Here’s a breakdown of the key conditions El Salvador must meet to secure the IMF loan : Phasing out Public Involvement in Chivo Wallet: By July 2025, El Salvador must cease all public sector engagement with the state-run Chivo wallet. This means no more government funds can be used to support or operate the Chivo wallet. Ending State Funding for Chivo: Following the previous point, the government must completely stop using state resources to finance the Chivo wallet by the specified deadline. Dissolving FIDEBITCOIN (Bitcoin Trust Fund): The controversial Bitcoin Trust Fund, FIDEBITCOIN, is required to be dissolved. This fund was set up to facilitate the conversion of USD to Bitcoin and vice versa when Bitcoin became legal tender. Audited Financial Reports: El Salvador must release fully audited financial reports for FIDEBITCOIN, providing transparency into the fund’s operations and financial status before its dissolution. Implementing a Bitcoin Holdings Management Framework: The government needs to establish a robust framework for managing its Bitcoin holdings. This includes clear policies and procedures for acquisition, storage, and potential sale of Bitcoin . Disclosing Wallet Addresses to the IMF: Transparency is paramount. El Salvador is mandated to disclose all its Bitcoin hot and cold wallet addresses to the IMF. This level of scrutiny is unprecedented in traditional financial agreements. Regular IMF Reviews: Compliance isn’t a one-time event. The IMF will conduct regular reviews until 2025 to monitor El Salvador’s adherence to these Bitcoin -related conditions. What are the potential benefits of these strict cryptocurrency regulations for El Salvador? While these conditions might seem restrictive, they could bring some unexpected benefits to El Salvador. Let’s explore the potential silver linings: Enhanced Financial Stability: By reducing public exposure to Bitcoin’s volatility, El Salvador could achieve greater financial stability. The IMF’s conditions aim to insulate public funds from the unpredictable nature of the Bitcoin market. Improved Investor Confidence: Adhering to international financial standards and demonstrating fiscal responsibility can boost investor confidence in El Salvador. This could attract foreign investment beyond just the crypto sector. Greater Transparency and Accountability: The requirements for audited reports and disclosure of wallet addresses promote transparency and accountability in the management of public funds related to Bitcoin . This can build trust with both international partners and Salvadoran citizens. Streamlined Financial Operations: Dissolving FIDEBITCOIN and phasing out the Chivo wallet could streamline government financial operations, removing complexities and potential inefficiencies associated with managing a parallel Bitcoin system. Securing the Crucial IMF Loan: Ultimately, compliance unlocks access to the $1.4 billion IMF loan , which is vital for El Salvador’s economic stability and development. This financial injection can support crucial public services and infrastructure projects. What challenges does El Salvador face in complying with IMF’s Bitcoin demands? Navigating these cryptocurrency regulation demands from the IMF won’t be a walk in the park for El Salvador. Significant hurdles lie ahead: Political Resistance: Bitcoin adoption is a flagship policy of President Bukele’s administration. Scaling back public involvement in Bitcoin could face political resistance from within the government and among staunch Bitcoin supporters. Technical Complexity: Dissolving FIDEBITCOIN, auditing its finances, and establishing a new Bitcoin management framework are technically complex tasks. El Salvador will need expertise and resources to execute these changes effectively and transparently. Public Perception and Chivo Wallet Users: The Chivo wallet has been widely adopted in El Salvador. Phasing out public support might lead to confusion and dissatisfaction among users who rely on it for transactions and Bitcoin access. Managing public perception during this transition will be critical. Economic Impact of Bitcoin Policy Reversal: While intended to enhance stability, a perceived reversal of Bitcoin policy could have unforeseen economic consequences, potentially impacting tourism and businesses that have embraced Bitcoin . Meeting Tight Deadlines: The July 2025 deadline for many of these conditions is relatively tight. El Salvador will need to act swiftly and decisively to meet these requirements within the given timeframe. Examples of other countries and cryptocurrency regulation El Salvador isn’t alone in grappling with cryptocurrency regulation . Many countries are navigating the complexities of digital assets, each with different approaches: Country Regulatory Approach Key Features United States Fragmented, evolving Multiple agencies (SEC, CFTC, FinCEN) involved, focus on investor protection and anti-money laundering, ongoing debate about classification of cryptocurrencies. European Union MiCA Regulation Comprehensive framework for crypto-asset markets, aiming for harmonization across member states, covers issuers, service providers, and consumer protection. Singapore Pro-innovation, risk-based Supportive of blockchain technology and crypto innovation, but with strict AML/CFT regulations, licensing regime for crypto service providers. China Strictly Regulated, Centralized Digital Currency Banned cryptocurrency trading and mining, focuses on developing its central bank digital currency (CBDC), the e-CNY. These examples highlight the diverse approaches governments are taking. El Salvador’s situation is unique due to its adoption of Bitcoin as legal tender, making the IMF loan conditions particularly significant. Actionable Insights: What does this mean for the future of Bitcoin in El Salvador? The IMF loan conditions signal a significant shift in El Salvador’s Bitcoin experiment. While Bitcoin remains legal tender, the government’s direct involvement is being curtailed. Here are some actionable insights: Decentralization of Bitcoin in El Salvador: The IMF conditions push for a more decentralized approach to Bitcoin in El Salvador. Reduced government involvement could foster a more organic and community-driven Bitcoin ecosystem. Focus on Private Sector Bitcoin Adoption: With the state stepping back from Chivo, the onus will be on the private sector to drive Bitcoin adoption. Businesses and individuals will need to innovate and create solutions for Bitcoin usage. Increased Scrutiny on Bitcoin Adoption Globally: The IMF’s stance on El Salvador will likely influence how other international institutions and governments view Bitcoin adoption. It sets a precedent for conditional financial assistance related to cryptocurrency policies. Potential for a More Sustainable Bitcoin Ecosystem: By addressing concerns about financial stability and transparency, El Salvador could potentially build a more sustainable and resilient Bitcoin ecosystem in the long run, even if it looks different from the initial vision. Conclusion: A pivotal moment for Bitcoin and El Salvador El Salvador’s journey with Bitcoin has reached a pivotal moment. The IMF loan conditions represent a significant course correction, demanding greater fiscal prudence and transparency in its Bitcoin strategy. While challenges undoubtedly exist, these changes also present opportunities for a more mature and sustainable integration of Bitcoin into El Salvador’s economy. The world will be watching closely to see how El Salvador navigates these new conditions and what it means for the future of Bitcoin adoption globally. This episode serves as a stark reminder that even revolutionary financial technologies must operate within the bounds of sound economic principles and international financial norms. To learn more about the latest Bitcoin trends, explore our article on key developments shaping Bitcoin price action.
The post Are These Altcoins Next in Trump’s Crypto Reserves? appeared first on Coinpedia Fintech News U.S. President Donald Trump’s latest announcement about adding select cryptocurrencies to the U.S. Crypto Strategic Reserves has ignited discussions across the crypto space. With Bitcoin (BTC) and Ethereum (ETH) ETFs already in place, and Solana (SOL), XRP, and Cardano (ADA) expected to follow, attention has now turned to other potential candidates. Here are the possible altcoins next to be added to the crypto reserve. Next Token To Add in Crypto Reserve A recent tweet post by CryptoRank highlights a list of altcoins currently awaiting ETF launches. These include Litecoin (LTC), Hedera (HBAR), Polkadot (DOT), Chainlink (LINK), Dogecoin (DOGE), Avalanche (AVAX), and Aptos (APT). Which tokens could be next in Trump’s crypto reserves? $BTC and $ETH ETFs are already live, with $SOL , $XRP , and $ADA —highlighted by Trump—also expected to launch soon. The next potential additions to the U.S. Сrypto Reserves could be among the altcoins awaiting ETF launches,… pic.twitter.com/ZSBwNKb9BJ — CryptoRank.io (@CryptoRank_io) March 3, 2025 Given Trump’s push for a U.S.-controlled crypto strategy, these tokens could be next in line for institutional backing. Dogecoin (DOGE), with a massive $32.4 billion market cap, stands out as a strong contender. Given its popularity and links to prominent figures like Elon Musk, it wouldn’t be surprising if it finds favor in Trump’s strategy with a possibility of Dogecoin ETF getting approval soon. Hedera (HBAR) and Chainlink (LINK), both valued at $10.4 billion, could also be appealing due to their blockchain infrastructure capabilities, which align with national security and financial interests. Litecoin, which was created as a faster alternative to Bitcoin in 2011, is closer to getting SEC approval for a spot Litecoin ETF. Experts believe there is a 90% chance it will be approved by the end of the year. Apart from all Avalanche, Polkadot & Aptos with market caps of $9.6 billion, $7.52 billion, and $3.74 billion, respectively also have strong foundations. These tokens could be next in Trump’s crypto reserves, helping shape the future of U.S. digital assets. Trump’s Crypto Strategy Perhaps CryptoQuant CEO Ki Young Ju recently expressed concerns that the U.S. is using crypto as a tool for economic dominance. His remarks suggest that the Trump administration’s stance prioritizes digital assets that serve national interests while leaving others unprotected. Trump’s selective support for certain assets has sparked debates about whether crypto is becoming more centralized under political influence. If his administration continues along this path, we could see a major shift in how cryptocurrencies are regulated and adopted in the U.S.
The latest report from Matrixport, dated March 4th, highlights a **decline** in futures open interest that coincides with a drop in cryptocurrency prices. This trend is largely attributed to the
Is the crypto winter deepening? The latest Crypto Fear & Greed Index reading is flashing red, signaling a significant downturn in market sentiment. For those watching the volatile crypto markets, the shift is palpable. The index, a key metric for gauging investor emotions, has taken a dramatic dive, plunging 18 points to land at a chilling 15. This nosedive propels us from the already cautious “Fear” territory directly into the dreaded “Extreme Fear” zone. What does this mean for your crypto portfolio, and how should you navigate these turbulent times? Let’s delve into the details. Decoding the Crypto Fear & Greed Index The Crypto Fear & Greed Index , a creation of Alternative.me, is designed to quantify the emotional temperature of the cryptocurrency market. Think of it as a mood ring for crypto investors. It operates on a scale from 0 to 100: 0: Extreme Fear – Signaling a potential buying opportunity, or a sign of further decline? 100: Extreme Greed – Often precedes market corrections, indicating a possible bubble. Currently sitting at 15, the index screams “Extreme Fear.” But what factors contribute to this reading? The index isn’t based on guesswork; it’s a data-driven analysis incorporating six key metrics, each weighted to reflect its influence on market sentiment: Factor Weight Description Volatility 25% Measures the current and maximum drawdowns of Bitcoin, comparing it with the 30-day and 90-day averages. Unusually high volatility can breed fear. Market Momentum/Volume 25% Compares current market momentum and volume against the 30-day and 90-day averages. Weak momentum and low volume can indicate a lack of investor confidence. Social Media 15% Analyzes sentiment on social media platforms, primarily Twitter, for crypto-related hashtags. Dominance of negative sentiment fuels fear. Surveys 15% (Currently paused) Previously involved weekly crypto polls to gauge investor sentiment directly. Bitcoin Dominance 10% Measures Bitcoin’s market cap share relative to the total crypto market. Increased Bitcoin dominance can sometimes signal a flight to safety during fearful times, as investors move away from riskier altcoins. Google Trends 10% Analyzes Google Trends data for crypto-related search queries. A spike in searches like “Bitcoin crash” often correlates with market fear. Why is the Crypto Market Sentiment So Fearful Right Now? Several factors could be contributing to the current Extreme Fear in the crypto market . While the provided data doesn’t specify the exact reasons for this sudden 18-point drop, we can consider common drivers of fear in the crypto space: Geopolitical Instability: Global events, such as the ongoing war in Ukraine or rising inflation fears, can trigger widespread market uncertainty and risk aversion, impacting all asset classes, including cryptocurrencies. Regulatory Uncertainty: Concerns about stricter regulations or potential crackdowns on the crypto industry by governments worldwide can induce significant fear among investors. Market Corrections and Liquidations: Significant price drops, like the one seemingly triggering this “Extreme Fear” reading, can lead to cascading liquidations, further amplifying negative sentiment. Macroeconomic Factors: Rising interest rates, inflation, and fears of recession in major economies can all contribute to a risk-off environment, pushing investors away from volatile assets like crypto. It’s crucial to remember that the Crypto Fear & Greed Index reflects collective investor emotions, which can be highly reactive and sometimes irrational. However, understanding these emotions can provide valuable insights into potential market movements. Navigating ‘Extreme Fear’: What Should Crypto Investors Do? When the Crypto Fear & Greed Index flashes “Extreme Fear,” it’s natural to feel uneasy. However, seasoned crypto investors often view periods of extreme fear as potential opportunities. Here’s a balanced perspective: Potential Benefits of ‘Extreme Fear’ Buying Opportunity? : Contrarian investors often see extreme fear as a signal to buy. When fear is rampant, asset prices can be driven down to undervalued levels, presenting potential entry points for long-term investors. The adage “buy when there’s blood in the streets” comes to mind. Market Reset: Extreme fear can purge the market of speculative excesses and unsustainable hype, paving the way for healthier, more sustainable growth in the long run. Challenges and Risks of ‘Extreme Fear’ Further Downturns: Extreme fear can be a self-fulfilling prophecy. Panic selling can exacerbate price drops, leading to further declines. It’s impossible to predict the absolute bottom. Emotional Decision Making: Fear can lead to impulsive decisions, such as selling assets at a loss out of panic. It’s crucial to avoid emotionally driven trading. Increased Volatility: Periods of extreme fear are often accompanied by heightened volatility, making it a risky environment for inexperienced traders. Actionable Insights for Crypto Investors During ‘Extreme Fear’ Review Your Portfolio: Assess your risk tolerance and portfolio allocation. Is your portfolio positioned to weather potential further downturns? Consider rebalancing if necessary. Do Your Own Research (DYOR): Don’t make impulsive decisions based on fear. Instead, double down on your research. Understand the projects you’ve invested in and their long-term potential. Dollar-Cost Averaging (DCA): Instead of trying to time the market bottom, consider using dollar-cost averaging to gradually buy into your chosen cryptocurrencies over time. This strategy can mitigate the risk of buying at the absolute peak or trough. Stay Informed, But Filter Noise: Keep abreast of market developments, but be wary of fear-mongering headlines and social media hype. Focus on credible news sources and fundamental analysis. Long-Term Perspective: Remember that cryptocurrency markets are inherently volatile. If you believe in the long-term potential of crypto, view periods of extreme fear as temporary setbacks and potential long-term opportunities. Cryptocurrency Analysis : Is ‘Extreme Fear’ a Buying Signal? The million-dollar question: Is this Extreme Fear a screaming buy signal? Historically, periods of extreme fear in the crypto market have often been followed by market rebounds. However, past performance is not indicative of future results. Ultimately, whether “Extreme Fear” represents a buying opportunity depends on your individual investment strategy, risk tolerance, and long-term outlook on the crypto market . It’s a time for caution, careful cryptocurrency analysis , and strategic decision-making, not panic. Conclusion: Navigating the Fearful Crypto Seas The sharp drop in the Crypto Fear & Greed Index to “Extreme Fear” is a stark reminder of the volatile nature of the cryptocurrency market. While fear can be unsettling, understanding its drivers and potential implications is crucial for informed decision-making. By staying calm, conducting thorough research, and maintaining a long-term perspective, investors can navigate these fearful times and potentially capitalize on opportunities that may arise. Remember, market sentiment is cyclical; fear eventually gives way to greed, and vice versa. The key is to be prepared and informed, regardless of the prevailing market mood. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin price action.
Are you feeling the winds of change in the crypto sphere? Lately, the chatter has been all about Bitcoin’s resurgence, leaving many wondering about the fate of altcoins. The Altcoin Season Index is flashing a clear signal, and it’s time to pay attention. According to CoinMarketCap (CMC), this crucial metric currently sits at a low 16, unchanged from yesterday, as of March 4th, 00:35 UTC. But what exactly does this number mean, and how should it influence your crypto strategy? Let’s dive deep into understanding the nuances of the Altcoin Season Index and what it signals for the current crypto market . Understanding the Altcoin Season Index: Your Crypto Weather Vane Think of the Altcoin Season Index as a weather vane for the cryptocurrency market. Instead of predicting rain or sunshine, it forecasts whether altcoins are outperforming Bitcoin, or vice versa. This index, meticulously tracked by CoinMarketCap , offers a data-driven perspective on market sentiment beyond just price fluctuations. It cuts through the noise and provides a clear, quantifiable measure of market trends. Here’s a breakdown of what makes up the Altcoin Season Index: Scope: It analyzes the top 100 cryptocurrencies listed on CoinMarketCap, excluding stablecoins and wrapped tokens to provide a pure representation of market dynamics. Timeframe: The index evaluates the performance of these cryptocurrencies over the past 90 days, offering a medium-term perspective that smooths out short-term volatility. Benchmark: Bitcoin (BTC) is the benchmark. The index compares the 90-day performance of each of the top 100 altcoins against Bitcoin’s performance during the same period. Scoring: The index ranges from 1 to 100. A higher score indicates a stronger ‘Altcoin Season’, while a lower score suggests a ‘Bitcoin Season’. To truly grasp its significance, let’s understand the thresholds that define Altcoin and Bitcoin Seasons. Decoding Bitcoin Season: What Does an Index of 16 Really Mean? With the Altcoin Season Index currently at 16, the message is unambiguous: we are in a Bitcoin Season . But what does this practically entail for investors and the broader crypto market ? The index operates on a simple yet powerful principle: Season Index Score Condition Market Characteristic Altcoin Season 75 or higher At least 75% of the top 100 coins outperformed Bitcoin in the last 90 days. Altcoins are generally experiencing higher gains than Bitcoin. Capital often flows from Bitcoin into altcoins, seeking higher percentage returns. Bitcoin Season 25 or lower 25% or fewer of the top 100 coins outperformed Bitcoin in the last 90 days. Bitcoin is generally outperforming altcoins. Capital tends to flow into Bitcoin, perceived as a safer haven in the crypto space. An index score of 16 firmly places us in Bitcoin Season territory. This means that over the past 90 days, a vast majority (more than 75%) of the top 100 cryptocurrencies have underperformed Bitcoin. Only a small fraction, 25% or less, have managed to outshine the original cryptocurrency. This dominance of Bitcoin has significant implications for the entire crypto market . Navigating the Crypto Market During Bitcoin Season: Strategies and Considerations So, what should you do when the Altcoin Season Index points to a Bitcoin Season ? Understanding the dynamics of this market phase is crucial for making informed decisions. Here are some key considerations: Bitcoin Dominance: Bitcoin Season often coincides with increased Bitcoin dominance. This means Bitcoin’s market capitalization grows at a faster rate than the rest of the market, or it declines less during downturns. Keep an eye on Bitcoin dominance charts to gauge the strength of this trend. Altcoin Performance: While it’s called ‘Bitcoin Season’, it doesn’t mean all altcoins will necessarily decline in price. However, their growth may be slower and potentially more volatile compared to Bitcoin. Selectivity is key. Research and focus on fundamentally strong altcoins that can weather the Bitcoin-centric market. Risk Assessment: Bitcoin is generally perceived as less risky than altcoins . During Bitcoin Season, investors often gravitate towards Bitcoin as a ‘safe haven’ within the volatile crypto space. Consider adjusting your portfolio risk profile based on your risk tolerance and investment goals. Trading Strategies: Traders might consider strategies that capitalize on Bitcoin’s strength, such as longing Bitcoin or Bitcoin-paired trading. For altcoin enthusiasts, identifying oversold altcoins with strong fundamentals could present buying opportunities, but caution and thorough research are paramount. Long-Term Perspective: Market seasons are cyclical. Bitcoin Season might be followed by an Altcoin Season, and vice versa. Avoid making impulsive decisions based solely on short-term market trends. Maintain a long-term perspective and focus on the fundamental value of your crypto investments. CoinMarketCap: Your Reliable Source for Market Intelligence Platforms like CoinMarketCap are indispensable tools for navigating the complexities of the crypto market . The Altcoin Season Index is just one of the many valuable metrics CMC provides to empower investors with data-driven insights. Here’s how CoinMarketCap can enhance your crypto journey: Real-time Data: Access up-to-the-minute price data, market capitalization, trading volume, and other crucial metrics for thousands of cryptocurrencies. Market Analysis Tools: Utilize tools like the Altcoin Season Index, dominance charts, and historical data to analyze market trends and identify potential opportunities and risks. Comprehensive Information: Explore detailed information about each cryptocurrency, including project descriptions, team details, tokenomics, and community links. Portfolio Tracking: Monitor your crypto holdings and track your portfolio performance directly on the platform. Educational Resources: Access a wealth of educational content, including articles, guides, and videos, to enhance your understanding of the crypto space. By leveraging the resources offered by CoinMarketCap and similar platforms, you can stay informed, make smarter investment decisions, and navigate the ever-evolving crypto market with greater confidence. Embrace the Season: Adapting to Market Cycles The Altcoin Season Index at 16 is a clear indicator: Bitcoin is currently leading the charge in the crypto market . While this might mean a period of relatively slower growth for altcoins in general, it’s crucial to remember that market seasons are cyclical. Understanding these cycles, utilizing tools like the Altcoin Season Index from CoinMarketCap , and adapting your strategies accordingly are key to long-term success in the dynamic world of cryptocurrency investing. Don’t fear the Bitcoin Season ; instead, see it as an opportunity to reassess, strategize, and position yourself for the next shift in market winds. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin price action.
The post Pi Price Surges Amid Crypto Blood Bath as the Selling Pressure Evaporates—May Trigger a 30% Upswing Soon appeared first on Coinpedia Fintech News The crypto markets underwent a brief upswing followed by an announcement of a crypto strategic reserve involving top tokens like Bitcoin, Ethereum, XRP, Solana, & Cardano. Meanwhile, the markets dropped as President Trump confirmed the start of 25% tariffs on Canada & Mexico. While Bitcoin plunged below $84,000 and is struggling to regain the lost momentum, Pi Network is displaying decent strength. The PI price has been trying very hard to keep up the momentum since the early trading hours. What’s next? Will Pi price reclaim $2 this month? Soon after the launch, the PI price spiked high to mark highs close to $3 but failed to surpass the range. Currently, the token has surpassed Hedera and reached the 11th spot of the crypto rankings, which suggests it could be the next big thing in the markets. The price has sustained a notable bullish trend despite the ongoing market crash. Therefore, the price is now believed to reclaim the lost levels and close the quarterly trade on a bullish note. As seen in the above chart, the PI price broke out from the falling wedge in the short term but has yet to validate the upswing. After experiencing massive volatility, the volatility has squeezed as the Bollinger Bands have contracted well. Besides, the stochastic RSI has reached the overbought zone, which suggests that a temporary pullback could be on the horizon. Meanwhile, the local support zone, between $1.6 and $1.62, could offer a strong base, which may trigger a strong rebound to the upper resistance around $1.92. Regardless of the growing strength and potential to surpass the giants, the Pi Network is yet to get listed on Binance. In the times when the newly launched memecoins get listed within minutes, this delay could have a negative impact on the token, instigating a huge whale sell-off. Meanwhile, the PI price is believed to maintain a healthy ascending trend even if it fails to get a bigger platform like Binance.
As of March 4th, recent data from Coinglass reveals that the overall open interest in Bitcoin futures contracts has reached 559,410 BTC, valued at approximately $46.81 billion, reflecting a notable
After failing to reclaim the important $3k level in February, Ethereum released pressure again and plunged to a key support level. It has seen a major recovery following a bounce back but is now losing steam. Ethereum has continued to mirror Bitcoin’s weekly movement but has failed to break below its critical $2,100 level, which has been providing support for the past four months. Respecting this critical level again, it bounced and recovered nicely to where it’s changing hands at around $2,378. The $2,550 level has posted a threat to the buyers in the past hours and is now holding it as resistance. A surge above it could trigger more increases in the coming days. Although it has formed a double-top pattern on the weekly chart, the price may crash soon. The potential target level for such a crash is $1,650. As soon as the price touches this level, a major bounceback is expected. The only condition for a bullish move right now is holding the critical support level. If it continues to strengthen, we may see a strong rally above the important $3k level before considering a reversal. While the trend is still in favour of the bears, they appear set for another rally. ETH’s Key Level To Watch Source: Tradingview The potential support levels for selling right now are $2,310 and $2,076. If the price breaks lower, $1,900 and $1,700 are the next support levels to consider for a test. In case of a reversal, ETH must retake a lot of resistance on the way up. For now, the close resistance level to watch for a test is $2,550 and $2,700. Higher resistance levels to keep in mind are $2,920 and $3,213. Key Resistance Levels: $2,550, $2,920, $3,213 Key Support Levels: $2,310, $2,076, $1,900 Spot Price: $2,378 Trend: Bearish Volatility: High Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: zephyr18/ 123RF
After forming a double-top pattern, Bitcoin broke down to a four-month low but has recovered significantly from the dip. It currently appears strong, but the next direction remains unknown while bearish. As expected, Bitcoin’s price collapsed last week following a strong breakthrough at the crucial $90k level, which has been standing as support for more than three months. It tested $78.2k with a long wick and closed that week’s price well above the lost crucial support. The collapse started after losing grip above the $95k level, but the price interestingly retested that level during yesterday’s surge – completing a break and retest pattern. The level was rejected, and the price dropped to around $93.6k at the time of writing. Retaking the rejected high with a surge could fuel more buying towards the $100k mark. This could signal a trend shift on the daily chart. But looking at the market, there’s no conviction for a shift yet following the latest price rejection. Of course, Bitcoin’s downtrend is still in play on the daily chart, but things are likely to change if the price stays well above the recent low. Otherwise, it may experience more dips in the coming days. Currently, it is gaining traction on the day. BTC’s Key Levels To Watch Source: Tradingview Marking the $95k level as resistance since last weekend, a push above it should advance recovery to $99,550. The $103,278 level is the next resistance to watch, followed by the $109,588 resistance. Towards the downside, the $91k level is providing support along with $85k and $80k. If the price collapses through these levels to reclaim last week’s $78,258 low, the next drop may surface at $71k. Key Resistance Levels: $99,550, $103,278, $109,588 Key Support Levels: $91,000, $85,000, $80,000 Spot Price: $93,615 Trend: Bearish Volatility: Low Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: alekskhmelev/ 123RF // Image Effects by Colorcinch
Crypto markets have lost more than 12% or almost $400 billion since the Sunday peak, and one of the largest losers has been Ethereum. ETH prices crashed to their lowest levels in 16 months, plunging 15% to $2,035 during early trading in Asia on Tuesday morning. The last time ETH traded below $2,000 was in November 2023, as the asset was slowly thawing from crypto winter. Ethereum has now returned to bear market levels and has dumped 50% since it tapped $4,000 in early December 2024. ETH Death Predicted Analyst ‘Nebraskangooner’ looked at the monthly timeframe chart and identified a double-top formation before predicting that prices would break down to the $1,200 level. This would send ETH back to bear market lows from late 2022 when it bottomed out at around $1,100. $ETH Monthly double top confirmed. Measured pattern breakdown target is somewhere close to $1200 https://t.co/2T4JCzBloh pic.twitter.com/mM29h3LOtI — Nebraskangooner (@Nebraskangooner) March 4, 2025 Analyst Dana Marlane commented that Ethereum has broken its uptrend and “appears to have confirmed a double top that could take price back to $1,000.” The ETH angst was shared among other analysts. “Ethereum may genuinely be one of the worst charts I have ever seen,” said Arete Capital managing partner McKenna. Ethereum may genuinely be one of the worst charts I have ever seen. pic.twitter.com/4nOWi0ZuyH — McKenna (@Crypto_McKenna) March 3, 2025 The ‘Anonymous Crypto Predictions’ feed said that ETH needed to close above the 200-week moving average as it did last week. This long-term trend indicator is currently around the $2,500 level, and ETH is well below that. Additionally, the ETH/BTC ratio, or price of ether in terms of bitcoin, fell to a five-year low of 0.024 this week as the asset tanked. #Ethereum – The key level to watch is the 200 weekly (black line). We need to close back above that like we did last week. Expect lots of manipulation and volatility. pic.twitter.com/aIskRebYqV — Anonymous | Crypto Predictions (@Crypto_Twittier) March 4, 2025 Flight to Risk-Off Many were questioning why crypto was crashing in such a bullish environment in the United States following years of being persecuted under the Biden administration. The Kobeissi Letter explained that the real driver here is the global move towards the risk-off trade and assets. “As trade war tensions rise and economic policy uncertainty broadens, ALL risky assets are falling. This was seen in stocks, crypto and oil prices, which all fell sharply today.” Moreover, Bitcoin is no longer seen as a store of value, having decoupled from gold, which hit an all-time high in late February. When Bitcoin falls, the digital lemmings follow, and Ethereum has been the first off the cliff. What is happening with crypto? Crypto markets are now worth -$100 billion LESS than they were prior to the US Crypto Reserve announcement. Over the last 24 hours, crypto has erased -$500 BILLION of market cap in a massive reversal. Here’s what you need to know. (a thread) pic.twitter.com/xlsqsnQKKd — The Kobeissi Letter (@KobeissiLetter) March 4, 2025 The post Ethereum Tanks to 16-Month Low as Analysts Predict Plunge to $1,200 appeared first on CryptoPotato .