In the context of cryptocurrency experiencing significant volatility, the market situation has seen notable developments in the early months of 2025. Bitcoin (BTC) has witnessed a significant decline, wiping out all profits gained at the beginning of the year, dropping to a session low of $92,600 USD - down nearly 10% from a recent peak above $102,000 USD. As of the latest trading session, BTC has reached $94,300 USD, down 2.5% in the past 24 hours.
This downturn also affects other altcoins such as Cardano (ADA) and Aptos (APT), contributing to a more than 3% decline in the CoinDesk 20 Index. The sell-off has liquidated nearly $1 billion in leveraged cryptocurrency positions, primarily in long bets. Uncertainties from macroeconomic factors, including rising government bond yields and inflation concerns, have led analysts to warn of a challenging January for risk assets.
Market reactions are influenced by strong economic data from the US and messages from the Federal Reserve, increasing concerns about inflation risks. Despite the decline, some analysts predict that BTC could recover and stabilize around $100,000 USD before challenging new highs. Market expectations ahead of upcoming economic reports and political events, especially the inauguration of Donald Trump, could stimulate optimism for a strong price increase.
Chairman of the US Commodity Futures Trading Commission (CFTC) Rostin Behnam will resign on February 7, following his final speech on January 8, where he emphasized the need for a comprehensive legal framework to address the increasing integration of the cryptocurrency industry into traditional finance. He expressed concerns that the lack of these regulations could pose challenges for the next generation of leaders. Behnam's resignation coincides with the upcoming inauguration of President-elect Donald Trump, who has signaled potential appointments of new leadership at the CFTC and SEC, with former SEC commissioner Paul Atkins likely to be nominated as SEC Chairman.
Gary Gensler, who also plans to resign, has emphasized the need for ongoing regulatory oversight in the cryptocurrency space, describing the industry as currently impacted by non-compliance and bad actors. Challenges regarding regulation and development will be at the center of discussions in the coming months, shaping the future of cryptocurrency and altcoins in the global market.
