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The broader cryptocurrency market faces near-term downside risks. Those are sentiments echoed by analysts at JPMorgan amid growing concerns that weakening demand and slowing momentum will trigger a significant pullback.
The broader cryptocurrency market faces near-term downside risks, according to analysts at JPMorgan, amid concerns that weakening demand and slowing momentum will trigger a significant pullback in the market.
Those sentiments come on the heels of flagship cryptocurrency Bitcoin pulling back by about 10% from recent all-time highs. After reaching record highs of $3.72 trillion in the broader cryptocurrency market late last year, the market has since pulled back by about 15%, according to JPMorgan analysts, signaling a significant decline in investor confidence.
“The correction over the past couple of months saw both bitcoin and ethereum futures approaching backwardation. This is a negative development and indicative of demand weakness by those institutional investors that use regulated CME futures contracts to gain exposure into these two cryptocurrencies,” JPMorgan wrote in a recent research note.
One of the primary reasons for the weakening demand in the crypto market is the lack of short-term catalysts to push prices higher. As noted by JPMorgan in a recent research note to investors, institutional investors have been booking profits after cryptocurrencies rallied to record highs following the reelection of Donald Trump as the US president.
While there are growing expectations that the new US administration will pass positive regulations that foster the nascent industry’s growth, most are only expected in the second half of the year.
“As we argued in our recent publication, crypto initiatives by the new US administration are more likely to take place in the second half of the year. Until then, weakening demand poses downside risk to crypto markets,” stated JPMorgan.
According to JPMorgan analysts, the lack of fresh catalysts in the short term could trigger further downside pressure in the crypto markets. The post-Federal Reserve Chair Jerome Powell inflation warning on December 18 saw the post-election cryptocurrency rally fizzle out towards the end of 2024. Bitcoin saw even more severe losses as investors dumped growth-oriented risk assets due to a spike in bond yields.
Stock market strategist and head of research at Fundstrat Global Advisors Tom Lee believes Bitcoin will be one of the best-performing asset classes in 2027 despite the recent deep pullback.
“But I think that there is still an argument that in the short term bitcoin is a risk-on asset so as the market liquidates, which happened over the weekend, bitcoin takes a hit so I’d say February is not looking great for bitcoin in the near term ” Lee said
Lee believes Bitcoin could drop to $70,000 before rebounding. Current levels are “probably not the floor for this month so it could visit much lower levels, even 70, but of course that’ll end up being a buying opportunity,” said Lee.
Our Methodology
To make the 10 worst performing Altcoins in 2015, we scanned the cryptocurrency market, focusing on the top 100 alternative coins by market cap. We then trimmed the list and focused on the top ten coins that have shed significant market value year to date. Finally, we ranked them in ascending order based on the percentage loss that the alternative coins have incurred year to date.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Worst Performing Altcoins in 2025
10. Algorand (ALGO)
Market Cap as of February 21 2025: $2.32 Billion
Year to Date Drop: 18.90%
The Algorand ALGO is the native token of the Algorand blockchain. It primarily facilitates transactions, pays transaction fees, and incentivizes network validators to secure the platform. Being a public blockchain platform, people can build decentralized applications on top of it. On the other hand, the native token ALGO has been under pressure ever since it peaked in 2025.
The coin has tumbled significantly and has fallen by about 18.90% in the year to date. The sell-off has coincided with a correction in the overall cryptocurrency market. Algorand’s long-term prospects and competitive edge stem from its ability to solve the inefficiencies of ledgers in any blockchain, be it Ethereum, Bitcoin, or any other. These issues include high transaction costs, energy waste, and scalability. Algorand utilizes the benefits of both centralized and decentralized blockchain projects. It is practical and efficient, like a centralized platform and a governance model for decentralized projects, to guarantee accountability.
9. Hedera (HBAR)
Market Cap as of February 21 2025: $9.44 Billion
Year to
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!
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- Georgia Unveils Senate Bill 228, Aiming to Establish a Strategic Bitcoin Reserve
- Feb 24, 2025 at 05:10 pm
- Georgia lawmakers unveiled Senate Bill 228 on February 23, 2025, aiming to establish a strategic Bitcoin reserve. This marks the state’s second legislative effort to integrate cryptocurrency into its financial strategy.
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- Hong Kong-Based Investment Holding Company HK Asia Will Buy More Bitcoin After Securing Board Approval to Expand Its Cryptocurrency Holdings
- Feb 24, 2025 at 05:10 pm
- The acquisition, made on Feb. 20 through an open market cryptocurrency exchange, was financed using “proceeds from the Group’s internal resources” and cost HK$5
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- Bitcoin (BTC) Could Dip to $73,000 If Price Loses This Crucial Support Level
- Feb 24, 2025 at 05:10 pm
- Bitcoin price action has since November 2024 been oscillating between $90,000 and $108,000. The $90,000 level has been a critical support zone. It has consistently been preventing deeper declines throughout this period.
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