Analysts have warned that the cryptography market could face increased volatility to come, because the main macroeconomic developments stimulate a feeling of risk among investors.
The cryptography market has lost $ 500 billion in a day
According to Kobeissi’s letter, the cryptography market has lost more than $ 500 billion in the last 24 hours, $ 100 billion less than its value before the announcement of the weekend by US President Donald Trump of a strategic crypto reserve, which would consist of a crypto basket, with Bitcoin and Ethereum as harddings.
Kobeissi’s letter analysts stressed that after Trump’s announcement on reserve plans, the global cryptography market increased from 2.7 billions of dollars to $ 3.1 dollars in just 10 hours. But in one day, all these gains have disappeared, causing the market even lower to 2.6 billions of dollars.
Net reversal, according to analysts, was a “colossal retail trap” which struck the bullish merchants, because the cryptographic funds experienced a record of $ 2.6 billion at the end of February, about $ 500 million more than the previous record in 2024.
Bitcoin (BTC) took a blow, lowering 3% below its level of pre-announcing and deducing nearly $ 250 billion in market capitalization in the last 12 hours, while Ethereum (ETH) has slipped to $ 2,002, down 8% compared to its anterior rebound.
In addition to the cryptography market, the S&P 500 index has dropped by almost 5%, while technological actions like Nvidia have also landed.
Crypto is no longer a safe refuge
On the evening of March 3, Trump announced that the United States would take a price of 25% on Canada and Mexico from March 4, closing all hope for a last minute agreement to mitigate trade tensions. In response, the two countries have promised to retaliate.
Tensions have increased more after China retaliated by increasing prices on the main American imports by 10 to 15%, as is a tariff of 20% on Chinese imports which should take effect on the same day.
“The real driver here is the world movement towards the risk trade. As the tensions of trade war are increasing and the uncertainty of economic policy widens, all risky assets decrease, “wrote Kobesi’s letter in a post X.
According to analysts, investors have lost confidence in Bitcoin as a refuge, and investors opt rather for gold.
Since January 1, the price of gold has increased by 10%, while the price of the BTC has dropped by almost 10% over the same period.
“The crypto is no longer considered a refuge game,” added the analysts.
More volatility in advance
Analysts warn that the crypto could face “even more wild swings” in the coming weeks.
In particular, the Volatility Panic Index of Goldman Sachs went from 1.4 in December to 9.1 last Friday, now at more than 10 years old, the levels seen for the last time during the main shocks of the market. According to Kobeissi analysts, this tip indicates that extreme volatility becomes the new standard.
In addition, a Bank of America survey quoted by them suggests that investors do not expect Bitcoin to resist well in the coming months. Only 3% of respondents think that the BTC would work best in a large -scale business war. On the other hand, 58% consider gold as the best safe asset for 2025.
However, Matt Mena, Crypto Research Stratège at 21Shares, suggested in comments to Crypto.News that the market reaction to prices may have been an excessive reaction.
According to him, “many investors had anticipated these movements” and expect to see a certain degree of stabilization during the transmission of curriculum vitae.
“Despite short -term volatility, the long -term perspectives of the cryptography sector remain brilliant,” said to be to crypto.news, adding that “wider structural trends promoting institutional adoption”, remain intact.
