 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
Cryptocurrency News Articles
Why did the altcoin market from November last year to early December come to an abrupt end?
Mar 12, 2025 at 05:01 pm
Trump's election initially boosted altcoins, but a strong jobs report and hawkish Fed stance quickly reversed the trend, exposing altcoins' inherent volatility and prompting investors to flee to safer assets like Bitcoin.
Trump was elected in November last year, and altcoins ushered in an opportunity to rebound. Before he was elected, he sent a friendly signal to cryptocurrency. The relaxed policy expectations caused investors to pour in, looking forward to getting a share of the altcoin market. For a moment, a large amount of funds flowed in, the price of altcoins was quickly pushed up, and the market became hot, which started a brief rise.
But the good times didn't last long, and the situation suddenly changed in early December. An unexpected U.S. employment report is like a bombshell, instantly changing the direction of the market. Investors who were originally immersed in the joy of rising altcoins began to re-examine the market. The positive employment data means that the economic recovery is strong and the market capital flow changes.
The hawkish stance of the Federal Reserve has become the key straw that crushes the altcoin market at this moment. As the Fed's statement becomes more tough, expectations of interest rate hikes have increased significantly and market interest rates have risen. This has greatly reduced the attractiveness of risky assets, with altcoins bearing the brunt of the brunt, and funds have been withdrawn one after another, seeking safer investment targets.
The characteristics of altcoins themselves are also factors that end the market. Compared with Bitcoin, the altcoin market is small in size and has poor liquidity. Once the market is in trouble, the withdrawal of funds is extremely fast. When investors' confidence is frustrated and altcoins are sold in large quantities, their prices will fall like free fall, making it difficult to support the previous upward trend.
The market focus quickly shifted from altcoins. The jobs report beyond expectations and the hawkish Fed stance have allowed investors to refocus on macroeconomic data and central bank monetary policy. At this time, Bitcoin has become the first choice for capital hedging due to its relative stability. Even if its own price pulls back, it performs better than altcoins.
The optimism formed by Trump's election has quickly dissipated under a series of shocks. Investors are beginning to worry about the impact of the Fed's continued tightening policy on the cryptocurrency market, and caution spreads. Funds withdraw from high-risk altcoins and return to mainstream cryptocurrencies such as Bitcoin, resulting in a rapid cooling of the altcoin market.
There are many problems with the altcoin project itself. Some projects have imperfect technology and limited application scenarios, and are just hyped up by cryptocurrency boom. When the market environment deteriorates and investors become rational, these problems are fully exposed, and investors lose confidence in altcoins, which accelerates the end of the market.
The cryptocurrency regulatory environment has also changed subtly during this period. Although no new major regulatory policies have been introduced, market expectations of tightening supervision have always existed. Under the hawkish tone of the Federal Reserve, regulators are more cautious about the cryptocurrency market, which makes investors more careful in investing in altcoins and dare not hold them rashly.
The altcoin market has come to an abrupt end, which is the result of the combined action of multiple factors. From the brief prosperity brought by Trump's election, to the market shift caused by the US employment report, the Federal Reserve's hawkish stance, to the defects and regulatory expectations of the altcoin itself, all of which have quickly turned from prosperity to decline in just one month.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
Other articles published on Mar 12, 2025
-
- Bitcoin Dominance Rate Soars to a Cycle High, Why Is the Altcoin Rally So Short-lived?
- Mar 12, 2025 at 05:12 pm
- Matrixport data shows Bitcoin dominance surged to a cycle high in March, exceeding previous peaks, highlighting the brief altcoin rally fueled by post-Trump election optimism, which quickly reversed due to strong US jobs data and the Fed's hawkish stance.
-
- Bitcoin price has pulled back but is still significantly better than the market. What are the reasons?
- Mar 12, 2025 at 05:04 pm
- Despite market corrections, Bitcoin outperforms due to its scarcity, first-mover advantage, decentralization, high liquidity, robust mining, low correlation with traditional assets, mature technology, strong media presence, and active community support.
-
- Why did the altcoin market from November last year to early December come to an abrupt end?
- Mar 12, 2025 at 05:02 pm
- Trump's election initially boosted altcoins, but a strong jobs report and hawkish Fed stance quickly reversed the trend, exposing altcoins' inherent volatility and prompting investors to flee to safer assets like Bitcoin.
-
-
- Why the BMT Token Generation Event by Binance and PancakeSwap Sparks a Frenzy in the Crypto Bear Market
- Mar 12, 2025 at 03:59 pm
- Binance and PancakeSwap's BMT token generation event injected excitement into the crypto bear market, offering easy profit potential and community-driven FOMO, despite the overall market downturn.
-
- Bitcoin rebounded strongly after 2020. Can such a crazy rise be replicated in the future?
- Mar 12, 2025 at 03:49 pm
- Bitcoin's 2020 "312" crash, triggered by the COVID-19 pandemic, was followed by a remarkable recovery, fueled by monetary stimulus and institutional investment, but future growth faces regulatory and macroeconomic uncertainties.
-
- Bitcoin plummeted to US$3,800 on March 12, 2020. How did it increase more than 20 times in 5 years?
- Mar 12, 2025 at 03:37 pm
- Bitcoin's dramatic 2020 crash to $3,800 was followed by a remarkable 20-fold surge, driven by halving events, increased institutional investment, shifting market sentiment, and technological advancements.
-
- What is the deeper meaning of the adjustments to the dollar system within the United States, such as some states declaring gold as legal tender?
- Mar 12, 2025 at 02:57 pm
- By February 2025, 46 US states declared gold legal tender, challenging the dollar's dominance and signaling a potential shift in global finance towards a more diversified monetary system.
-
- How the Manufacturing and Circulation Mechanism of the US Dollar as a Special 'Commodity' Leads to Global Wealth Transfer
- Mar 12, 2025 at 02:45 pm
- The US dollar's creation and circulation, controlled by the Federal Reserve, facilitates global wealth transfer; low interest rates cause dollar inflows into emerging markets, while rate hikes trigger asset sell-offs and repatriation, benefiting US investors.
