As of February 24, 2025, the cryptocurrency market is experiencing a downturn due to several factors:
Market Correction: The market has entered a consolidation phase, with major cryptocurrencies trading 10% to 15% below their peaks. This correction follows a significant bull run over the past five months, where the total market capitalization surged from $2.11 trillion to a peak of $3.72 trillion.
Security Breach: A significant hack occurred on the Bybit exchange, where hackers stole $1.5 billion worth of digital assets from its Ethereum wallet. This incident has raised concerns about the security of cryptocurrency platforms and contributed to market uncertainty.
Technical Resistance: Cryptocurrencies are facing technical resistance levels, leading to price declines. For instance, Bitcoin is struggling to maintain levels above $96,000, and Ethereum has dropped by up to 6%.
Regulatory Developments: While some regulatory actions have been favorable, such as the SEC closing its investigation into Robinhood, the overall regulatory environment remains uncertain. The crypto market is sensitive to regulatory news, and any changes can impact investor sentiment.
These factors combined have led to a decline in the cryptocurrency market, affecting major coins like Bitcoin, Ethereum, and others.