The price of Ether, the world’s second-largest cryptocurrency, has dropped by 20% in the past week. Investors are worried about inflation and possible new tariffs. These concerns have caused volatility in many financial markets, including digital currencies like Ether.
Bitcoin is like digital gold, scarce and valuable, a store of value in the digital age.
— Binance (@binance) February 10, 2025
Market sentiment can significantly influence crypto trends
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— Binance (@binance) February 8, 2025
Experts say the drop may be an overreaction, but the market could continue to be unstable in the near future. This shows how cryptocurrencies can be affected by global economic factors, even though they are often seen as a way to avoid traditional market fluctuations. Investors should keep an eye on economic indicators and think about diversifying their portfolios to manage risk.
Bitcoin, Ethereum, and Ripple are all expected to see further price drops. Bitcoin is trading below $96,000 and could test the $90,000 level. Ethereum declined by nearly 9% last week and is trading around $2,584.
ECB dismissing Bitcoin's importance as store of value.
Meanwhile EURUSD. pic.twitter.com/0Zm0FXe3e8— Paolo Ardoino 🤖🍐 (@paoloardoino) February 10, 2025
Trump’s tariff pause boosts cryptos
If it closes below $2,359, it may drop to $1,905. Ripple broke below its trendline and declined by over 10%.
Things didn't pan out as in prior bull runs time-wise, so need to go back to the drawing board. First the Fed turned hawkish in December, then the Trump coin caused extraordinary volatility and a liquidity drain, and finally Trump came out more agressive than expected after…
— Alex Krüger (@krugermacro) February 10, 2025
It is currently trading around $2.34 and could test $1.40 if it closes below $1.96. However, bitcoin and crypto prices have surged after President Trump announced a pause on tariff threats. There is speculation that a new U.S. sovereign wealth fund could be used to buy bitcoin, which excited the crypto community.
Senator Cynthia Lummis called it a “big deal” and suggested it could help the U.S. government accumulate bitcoin. However, the U.S. crypto czar David Sacks did not confirm plans for a bitcoin reserve, instead announcing a working group to develop crypto regulation. Despite this, analysts remain optimistic.
Geoff Kendrick of Standard Chartered Bank predicted bitcoin could hit $500,000 before Trump leaves office in 2029, reaching a market cap of $10 trillion. The U.S. government’s growing interest in bitcoin reflects a belief in its long-term value.