📍The year 2025 is exceptionally turbulent and full of contrasts for the cryptocurrency market. At the beginning of the year, Bitcoin surpassed the $100,000 mark, supported by the approval of Bitcoin spot ETFs in the USA and increasing institutional adoption. However, this optimism was quickly replaced by concerns over geopolitical tensions and regulatory interventions.
📍In February, the market was hit by the largest liquidation of the year when President Trump's new tariffs triggered a panic sell-off that wiped out $400 billion from the cryptocurrency market capitalization. More than 700,000 traders were liquidated, indicating the high volatility of the market. Subsequently, in March, Trump announced the creation of an American strategic crypto reserve, causing a sharp increase in Bitcoin's price by 20%.
📍Meanwhile, Europe introduced the MiCA regulation, which brings stricter rules for cryptocurrencies, including identity verification requirements and licensing for service providers. These measures may increase the confidence of institutional investors, but at the same time limit the anonymity of transactions.
📍The impact of artificial intelligence on the market is also significant. The launch of the Chinese AI chatbot DeepSeek raised concerns about China's technological dominance, contributing to further market decline.
📍Overall, the cryptocurrency market in 2025 is characterized by high volatility, geopolitical influences, and increasing regulation. Investors should be prepared for rapid changes and closely monitor global events that may affect their portfolios.
