Electronic Money Incident: Why is the Cryptocurrency Market Decreasing?

The cryptocurrency market has dropped in the last few days after starting 2025 on a high note. With negative performance for most cryptocurrencies, red dominates the cryptocurrency dashboard. But is that significant? Not really. Here is a market analysis of some major cryptocurrencies affected by the current market crash and the numbers that can tell us about their actual performance in 2025.

Crypto Market Crash Analysis: Performance of Major Cryptocurrencies Bitcoin (BTC) As the leading currency in the market, Bitcoin has undergone a price correction: Lowest on January 7: $92,540Current price: fluctuating around $93,400, down 2.96% in the past 24 hours. Despite the decrease, the current price of Bitcoin is still higher than the lowest level since December 2024 and January 2024. Ethereum (ETH) Ethereum, the second largest cryptocurrency, is also facing price pressure: Lowest on January 7th: $3,208 Current price: Trading around $3,320, down 2.50% in 24 hours. Like Bitcoin, Ethereum remains resilient compared to the lowest level in the previous month and year. Cardano (ADA) Among the top altcoins, Cardano is one of the most heavily affected cryptocurrencies: Current price: $0.91, decreased by 8.52% in the last 24 hours. The significant decline of Cardano highlights the common challenges of altcoins during this recessionary period. Dogecoin (DOGE) As the top meme currency and one of the top 10 cryptocurrencies by market capitalization, Dogecoin is not exempt from this situation: Current price: $0.33, down 4.96% in 24 hours. The sell-off of Dogecoin reflects the overall market sentiment affecting both altcoins and meme coins. Compare to Previous Low Despite the corrections, Bitcoin and Ethereum continue to trade at levels higher than the lowest point in December 2024 and January 2024: Bitcoin (BTC)

January 2024 Low: $38,514 December 2024 Low: $91,378Current Price: $93,417 Ethereum (ETH)

January 2024 Low: $2,095 December 2024 Low: $3,099 Current Price: $3,321 This recovery potential emphasizes the maturity of the leading cryptocurrency market, even in the context of volatility. Why is the Cryptocurrency Market Decreasing The cryptocurrency market has faced a significant decline since January 7, 2025, lasting until January 9. According to previous market analysis of the impact of the cryptocurrency downturn, it can be concluded that market leaders Bitcoin (BTC) and Ethereum (ETH) have witnessed notable corrections, while top altcoins like Cardano (ADA) and meme coin Dogecoin (DOGE) have been more severely affected, amplifying pessimism. However, despite this, the current price is still higher than the lowest point of the previous month and the same period last year. But what are the factors behind the collapse of the cryptocurrency market? The top 3 factors leading to the collapse of the cryptocurrency market

1. The stronger employment data of the United StatesThe employment data in the United States is reported at 8.096 million, well above the consensus estimate of 7.605 million. Impact: A strong job market reduces the likelihood of the Federal Reserve cutting interest rates in the near future. Impact on cryptocurrencies: Tighter monetary policy typically reduces liquidity, creating downward pressure on risk assets such as Bitcoin and altcoins.
2. Concerns about the new pandemic Concerns about a potential new virus, HMPV (Human Metapneumovirus), are causing global market instability, bringing back memories of the initial fear of COVID-19. Recent events: Reports of several cases worldwide on January 7th have caused panic among investors. Market reaction: The increased instability has led investors to stay away from volatile assets such as cryptocurrencies, reinforcing the selling spree.
3. Oil price increases Russia and OPEC's actions to tighten oil supply have caused oil prices to soar. Economic significance: High oil prices increase concerns about inflation, reducing the possibility of the Federal Reserve cutting interest rates aggressively. Crypto Connection: Inflation pressure reduces risk appetite, leading to increased selling pressure in the cryptocurrency market. Additional factors for the cryptocurrency market downturn Investors' profit-taking: After a sharp increase in 2024, many investors are ensuring profits, contributing to the short-term sell-off. Changes in market sentiment: Predictions about changes in policies and macroeconomic indicators often drive rapid adjustments in the cryptocurrency market. Conclusion Part The recent crypto market downturn has been influenced by macroeconomic factors, including strong US employment data, concerns about the pandemic, and rising oil prices. Bitcoin and Ethereum have shown resilience, maintaining higher levels than in previous months and years, but altcoins like Cardano and meme coins like Dogecoin have faced more significant declines.