On the first day of 2025, we witness the ever-changing cryptocurrency market, with many emerging trends, especially in the current sensitive context of Bitcoin and altcoins.
A significant recent event is the company MicroStrategy continuing its large-scale buying strategy with 2,138 Bitcoin worth $209 million. This brings their total Bitcoin ownership to 446,400 BTC. However, despite this strong move, the Bitcoin market is showing signs of decline, with the price at one point dropping below the $92,000 threshold due to profit-taking behavior from investors.
Traders at QCP Capital are skeptical about the potential for rapid price increases in January. They note that recent profits have been quite modest and similar to December. The current market shows many betting on the possibility of Bitcoin rising in March, as reflected in the strong increase in call options.
Not only Bitcoin, but many other altcoins like Ether and XRP are also declining. The CoinDesk 20 index has decreased by 2.7%, reflecting the overall market trend. Notably, Bitcoin-related ETF products have seen significant outflows of over $420 million ahead of the new year, indicating that cautious sentiment may be forming.
One of the highlights in Markus Thielen's analysis from 10x Research is the prediction that Ether (ETH) will not be a smart investment for the 2025 growth phase. He emphasizes the decline in the number of active validators on the Ethereum network as a worrying sign and reflects skepticism about upcoming network improvements.
However, experts' opinions remain divided. While some see potential for Ether's price increase, others like Tim Lowe from Attestant believe that demand for Ether may rise if there is an effective marketing campaign. Over the past year, Bitcoin has significantly outperformed Ether, and the demand for Bitcoin ETFs is much higher than for Ether ETFs.
In summary, while some experts advise against investing in Ether in the short term, other analysts have contrasting views on the future trend of this cryptocurrency, with some predicting breakthroughs or declines in value. Each investor needs to carefully consider and closely monitor market developments and strategies of major players to make sound investment decisions.
