KEY POINTS:-
Bitcoin continues to account for 60% of the market cap of the entire crypto market, and will be the key to whether crypto heads higher or lower in 2025.
Ethereum is down more than 30% for the year, creating stiff headwinds for future growth in the crypto industry.
XRP, up 400% since the election, is the one cryptocurrency that has benefited the most from the Trump administration's pro-crypto approach to regulation.
If you are feeling confused by all the volatility in the crypto market right now, there are three coins that should be on your radar: Bitcoin (BTC -3.11%), Ethereum (ETH -2.95%), and XRP (XRP -7.61%). Combined, they can offer a lot of clues about where crypto is headed next.
Bitcoin
At the top of the list is Bitcoin. If history is any guide, then the crypto market is headed higher or lower based on where Bitcoin is going. That's because Bitcoin accounts for a whopping 60% of the entire value of the crypto market, and it's the one cryptocurrency broadly held by both retail and institutional investors.
Instead, keep your eyes on the monthly inflows and outflows of the spot Bitcoin exchange-traded funds (ETFs). This will tell you what investors really think about Bitcoin. Right now, some of the biggest institutional investors appear to be buying Bitcoin on the dip. They're taking a long-term look at Bitcoin, and deciding that they like what they see.
Ethereum
Arguably, Ethereum has been the most disappointing cryptocurrency of 2025. It's now down 33% for the year, and shows no real signs of reversing its slide. That's particularly important to note, because Ethereum is still the world's second-largest cryptocurrency. While Ethereum lacks the heft of Bitcoin, it's still big enough to weigh heavily on the minds of crypto investors.
With that in mind, the Trump administration appears to be doing everything it can to push Ethereum higher. For example, the Trump-affiliated World Liberty Financial has been steadily buying Ethereum for its portfolio. And, on March 2, Trump said he would include Ethereum in his proposed crypto strategic reserve. That would ensure steady buying of Ethereum by the U.S. government for years to come.
XRP
The third and final piece of the puzzle is XRP. It's now up 400% since the election, and is currently the top-performing large market cap cryptocurrency of 2025.
The performance of XRP is an important litmus test for what the market thinks about the Trump administration's approach to regulation. Remember, the price of XRP had stalled out at $0.50 in November 2024, and things looked dicey at best for its future. But then Trump was elected, and the price of XRP rocketed higher. So keep a close eye on how XRP performs in the months ahead.
Which of these coins should you be buying?
Of the three coins mentioned above, the one obvious buy is Bitcoin. Even with its early slump, it could still end up having a monster year. Top investment firms continue to double down on their early price forecasts for Bitcoin. And that means Bitcoin might hit $200,000 by the end of 2025.
As a result, I'm bullish on Bitcoin over the long haul, and quite willing to hunker down and wait out this current bout of extreme market volatility.