Crypto markets have declined an additional 2.7% today, bringing total capitalization down to $3.6 trillion, with altcoins bearing the brunt of the downturn.
“Capital is unlikely to rotate from BTC to alts because the majority of CT [crypto Twitter] is self-confessed to be mostly in altcoins,” noted trader ‘TXMC’ on January 29.
Analyst James Check agreed, asserting that it is “very clear,” before elaborating, “CT is massively underinvested in Bitcoin, overweight alts, and specifically in alts that haven’t seen gains.”
This underinvestment means that the sentiment can be shattered by a mere 1% pullback in BTC, “resulting in a -30% impact on their portfolio,” he explained.
I’m working on quantifying this as we speak, and it’s very clear.
CT is massively underinvested in Bitcoin, overweight alts, and specifically the alts that didn’t go up.
Hence sentiment is rekt on a 1% BTC pullback…it results in a -30% on their portfolio. https://t.co/9g968usmw8
— _Checkmate ⚡☢️️ (@_Checkmatey_) January 28, 2025
Ethereum Turmoil Intensifies
In the meantime, trader ‘Bluntz’ shared with his 314,000 followers on X:
“The altcoin capitulation while BTC is still above $100k is really something to behold; I don’t think it’s ever been this bad before.”
Ethereum is suffering significantly, as its price dipped back to $3,000 on Tuesday before managing a slight recovery. Since peaking at just over $3,700 three weeks ago, ETH has plummeted 16%.
The ETH/BTC ratio continues to decline as Bitcoin holds above six figures, currently at 0.03 and nearing its lowest point in almost four years, as per Tradingview.
ETH/BTC chart looks like this and Vitalik comes lectures us on how things work.. pic.twitter.com/0zSAGNKF2y
— CoinMamba (@coinmamba) January 28, 2025
The Ethereum Foundation has recently experienced some internal dissent and a leadership shakeup, which has added downward pressure on the asset. However, there are bullish developments, such as the Donald Trump DeFi project, and World Liberty Financial continues to acquire ETH.
Wow Trump again bought $10,000,000 of Ethereum in the last 2 hours.
He keeps on buying. LFG pic.twitter.com/xUw1q7xYgG
— Ted (@TedPillows) January 28, 2025
Meanwhile, the likelihood that President Donald Trump will establish a national strategic Ethereum reserve this year is increasing, according to the blockchain betting platform Polymarket. Analysts remain optimistic, with some forecasting a new all-time high within the next couple of months, a historically favorable period for ETH prices.
$ETH price is being suppressed, allowing big players to accumulate. Here’s my outlook:
– 4k breakout by end of Feb
– Bullish March, 4k to 5k in days
– Early April, 6.5k
2/3-weeks correction, then a push to 9.5-10k, likely fueled by a catalyst. pic.twitter.com/6fOhdxGdsx— Wolf (@IamCryptoWolf) January 28, 2025
Nonetheless, none of these developments have eased the Ethereum angst, which continues to grow as the asset’s price weakens.
Bitcoin Stays Strong
Bitcoin dropped to $100,272 during late trading on Tuesday, but rebounded during the subsequent Asian trading session to reach $102,600 at the time of this writing.
Aside from a few brief declines, BTC has maintained its position above six figures for approximately the past 12 days and is just 6% shy of its all-time peak.
February has also historically been a bullish month for Bitcoin prices over recent years, suggesting that movement may be imminent.
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