How the cryptocurrency market reacts to loud news: the case of Trump's 'crypto reserve'
Yesterday, on March 2, 2025, Donald Trump announced the creation of the Crypto Strategic Reserve – a reserve fund of the U.S. that includes XRP, SOL, and ADA. This announcement instantly caused a sharp rise in cryptocurrencies: Solana (SOL) surged by more than 18%, Bitcoin (BTC) rose by 7-8%, Cardano (ADA) and XRP also showed significant growth. Pattern: pump before the news – correction after
Ethereum Pudala Update: How Will It Affect the Price of ETH?
On March 5, 2025, the Ethereum Pudala update will be launched on the Sepolia test network. This is an important milestone in the network's development aimed at improving scalability, security, and user experience. But the main question for traders and investors is: how will this affect the price of ETH? Let's figure it out.
On March 5, the Ethereum "Pudala" update will be launched in the Sepolia test network
Main changes in the Pudala update: 1️⃣ Use of EOA to bring the Ethereum user experience closer to the concept of "account abstraction". 2️⃣ Increase in the staking limit for Ethereum validators. 3️⃣ Expansion of "Blob" data processing capabilities, which will improve the network's scalability.
The Pudala update will help increase the amount of ETH staking, enhance network security, improve the user experience, and accelerate data processing.
The bull market's strides have not stopped - this correction is just a preparation for the next rally.
The altcoin madness is temporary, and the current fall is just a prelude to an even stronger storm. After the market party, the cruelest moment of reckoning always comes.
You either exit with a profit or become a victim on the chart. The end of a bull market always sacrifices the greediest.
How will the mass exit of institutional investors to cash affect the crypto market?
Buffett's recent decision to increase cash holdings may signal to other institutional investors, leading to reduced liquidity and increased volatility in the crypto market. Main consequences: - Outflow of capital – Institutional investors are exiting risky assets, including crypto.
How to Determine the Strength of a Cryptocurrency: Price vs. Volume
In the crypto market, many people make the same mistake - they evaluate an asset only at the current price. If a coin grows, it is called a "king". If it falls - a "weakling". This approach leads to chaotic decisions, loss of deposit and an eternal cycle of "bought at highs, sold at lows". But the true strength or weakness of a coin is relative and depends not only on price but also on volume structure and market phases.
Factors and dates that can cause a fall or sharp fluctuations in the market from February to April
🔹 February 12 – FOMC Minutes (already published overnight). 🔹 March 5 – FOMC Beige Book (economic situation review). 🔹 March 19 – FOMC meeting (key event for the market). 🔹 April 2 – FOMC Minutes (analysis of the March decision).
⚠ These dates are usually accompanied by a market decline. Be careful in short-term trading!
Trading is not just buying and selling assets. It is psychology, risk management, and a deep understanding of market mechanisms. Nevertheless, the statistics remain unchanged: 95% of traders lose money. This figure is explained by many factors, but one of the key ones is the Dunning-Kruger effect. This cognitive bias occurs when people with low levels of knowledge overestimate their abilities. In trading, this is particularly evident: beginners, after seeing a few successful trades, start to think they are market geniuses. However, the market quickly puts them in their place.
When the majority runs out of money – growth begins
One of the main reasons why the market goes against the majority is liquidity. When traders lose money, market makers and large players gain it. But the most interesting part begins when the majority has no money left – neither for longs nor for shorts. How does this mechanism work?
Ethereum (ETH) was unable to break through the resistance
#ETH What’s next? Yesterday ETH and the entire crypto market looked confident, but a sudden external factor changed the picture. Trump announced 25% tariffs on China, Canada, and Mexico, which caused a sharp decline in the US stock market and the crypto market. As a result, ETH, having just started to rise, faced unexpected pressure.
Which altcoins will start growing first in the 2025 alt season?
Historically, the alt season starts in waves, with large altcoins growing first, followed by medium and small ones, and finally memecoins and low-liquidity tokens. 1. Altseason leaders - Ethereum and L1 blockchains These altcoins grow first because they are the most liquid and capital switches to them after Bitcoin.
There will be no alt season until the end of winter!
What is happening now? BTC.D dominance — 59.61% → This is a high level that is not favorable for altcoins. Bitcoin is rising → Capital continues to flow into BTC rather than altcoins. Altcoins are not showing sharp growth yet → This indicates that the alt season has not started. When to expect the alt season?
Today, January 29, 2025, the Federal Reserve System (Fed) of the United States is holding a meeting to decide on the base interest rate. Most analysts expect the Fed to maintain the current rate range of 4.25–4.5% per annum.
However, the recently inaugurated President of the United States, Donald Trump, has expressed a desire to significantly lower the base interest rate, which may influence future Fed decisions.
Thus, it is expected that the current rate will be maintained at today's meeting, but changes may occur in the future depending on the economic situation and the policies of the new president.
$ENA There are several possible reasons: 1️⃣ Lack of liquidity for large positions The trading volume of ENA (94.54 million USDT) is not very high compared to top altcoins. Large players (whales) cannot enter an asset without a strong influence on the price. 2️⃣ Lack of a fundamental trigger
Bitcoin's dominance continues to remind us of itself, holding nearly 58% of the market, as if it were an unchanging monarch, unwilling to make way for others. This is an impressive achievement, but let's be honest: isn't it time to give altcoins a chance to shine? The market has long since changed, and new technologies such as DeFi, Layer 2 solutions, and NFTs are actively developing, offering fresh ideas and approaches.
Bitcoin certainly deserves respect for its historical significance. It was the first, paving the way, but today the world of cryptocurrencies has become much broader. Altcoins are showing interesting results, growing and evolving, but Bitcoin's dominance seems to be stifling their potential. This is not criticism, but rather a call for greater openness and diversification.
When will the altseason arrive? Investors are waiting for the moment when the market can fully evaluate new projects, when capital will begin to redistribute not only towards "cryptocurrency gold" but also towards innovative solutions. Yes, Bitcoin remains the foundation, but it’s time to stop looking solely at it. The world of cryptocurrencies is multifaceted, and there is room for everyone.