Analysts have warned that the cryptomarkt could be confronted with increased volatility ahead, because important macro-economic developments cause a risk-off sentiment among investors.
The crypto market colander $ 500 billion a day
According to the Kobeissi LetterThe Cryptomarkt has paid off more than $ 500 billion in the last 24 hours -about $ 100 billion less than the value of US President Donald Trump’s weekend announcement of a strategic crypto reserve, which would consist of a basket with crypto assets, with bitcoin and etherem as core possession.
Analysts at the Kobeissi letter pointed out that after the announcement of Trump on spare plans, the global cryptomarkt rose from $ 2.7 trillion to $ 3.1 trillion in just 10 hours. But within a day all those profits and drag the market even lower to $ 2.6 trillion.
According to analysts, the sharp reversal was a “colossal retail staircase” that struck bullish traders hard, because crypto funds saw a record of $ 2.6 billion at the end of February – about $ 500 million more than the previous record in 2024.
Bitcoin (BTC) made a hit, fell 3% below the level of pre-announcement and lost almost $ 250 billion in market capitalization in the last 12 hours, while Ethereum (ETH) fell to $ 2.002, by 8% of his earlier rebound.
In addition to the cryptomarkt, the S&P 500 index fell almost 5%, while technical shares such as Nvidia also refueled.
Crypto no longer a safe haven
On the evening of 3 March, Trump announced that from 4 March the US would hit a rate of 25% on Canada and Mexico, so that the hope for a last-minute deal to facilitate trade stresses. In response, both countries have promised to hit back.
Tensions further escalated after China had taken revenge by increasing rates for important American imports by 10-15%, just like a rate of 20% on Chinese import that comes into effect on the same day.
“The real engine here is the global step towards the risk-off trade. As the tensions of the trade war rise and the uncertainty of economic policy expands, all risky assets fall, ”wrote the Kobesi letter in an X -post.
According to analysts, investors have lost their self -confidence in Bitcoin as a safe port -active, and investors choose gold instead.
Since January 1, the gold price has risen by 10%, while the price of BTC fell almost 10% in the same period.
“Crypto is no longer seen as a safe haven,” analysts added.
More volatility ahead
Analysts warn that crypto could be confronted with ‘even Wilder Swings’ in the coming weeks.
In particular, the volatility panic index of Goldman Sachs rose from 1.4 in December to 9.1 last Friday, now almost 10 levels for the last time during earlier large market shocks. According to Kobeissi analysts, these peaks indicate that extreme volatility will be the new standard.
Furthermore, a Bank of America survey quoted by them suggests that investors do not expect Bitcoin to last well in the coming months. Only 3% of the respondents believe that BTC would perform best in a complete trade war. 58% regards gold as the top safe port of assets for 2025.
Matt Mena, Crypto Research Strategist at 21Shares,, however, suggested in comments at Crypto.news that the market reaction at the rates may have been an overreaction.
According to him, “many investors had anticipated these movements” and expect to see a certain degree of stabilization when acting.
“Despite the short-term volatility, the long-term prospects for the crypto sector remain clear,” told Mena Crypto.News, adding that “broader structural trends that promote the institutional adoption” remain intact.
