Bitcoin
Will February Mark the Start of 2025 Altcoin Season?
On Monday, the crypto market experienced what was billed as the largest liquidation event in history, destroying upwards of $2 billion in positions. Amid calls for the colloquial ‘altcoin season,’ analysts are divided on whether February is the month or if crypto markets must wait until April.
The arguments and projections refer to past market crashes, such as those in 2020 and 2022, and how the sector responded.
Analysts Weigh In on the Crypto Market Recovery Timeline
BeInCrypto reported on Monday’s historic $2 billion liquidation event, provoked by US President Donald Trump’s tariffs. As it happened, the president reached an agreement with Canada and Mexico, prompting some level of recovery in the market.
However, analysts remain unconvinced that a full-blown market recovery is here, even as others call for an altcoin season.
Mathew Hyland, a blockchain analyst, shared his insights on the market downturn, emphasizing that recovery will take time. He highlighted that although Bitcoin (BTC) did not break down, altcoins suffered significantly, resulting in the historic liquidation event. He says this indicates the extent of damage sustained by the altcoin market.
According to Hyland, while the massive liquidation event signified the market’s bottoming out, it is not yet ripe for a bounce back.
“Considering this was the largest liquidation event in Crypto history, it likely means the low is in. However, in 2020 & 2022, it took over two months for the full recovery to take place,” Hyland said.
The controversial analyst also pointed out that December highs for most altcoins may not return for at least two months, if not longer. Based on this outlook, Hyland cautions traders to temper their expectations, adding that even V-shaped recoveries like in 2020 took weeks with several dips along the way.
Another technical analyst, CryptoCon, echoed Hyland’s sentiments. He described the event as a major shakeout for overleveraged traders. While the analyst acknowledges that the cycle is well on track, he did not suggest an imminent recovery.
“What happened to a good-performing February? Still inbound, the cycle is well on track. It is clear that certain entities do not want people longing altcoins from their bottoms at 100X for the entire bull market,” the analyst stated.
CryptoCon’s outlook aligns with several other analysts, including Rover, who hold that the trajectory remains intact. In a post on X, CryptoRover highlighted that altcoins would go “parabolic” soon.
Arguments for Altcoin Season in February
Meanwhile, like CryptoCon, sentiment for February remains positive among other analysts, including Merlijn The Trader. In a related post, the analyst predicts that February will signal the start of an altcoin season and, therefore, market recovery. The analyst cites historical data suggesting that altcoin rallies have consistently begun in February, and this cycle should be no different.
“Altcoin season starts in February! History doesn’t lie, and neither do the charts,” said Merlijin in a post.
Others point to Bitcoin’s dominance as a key indicator, noting that the top is almost in for this metric, setting the stage for an altcoin season. Similarly, Coinvo, an analyst, reiterated the sentiment.
“Altcoin season has always started in February, and this cycle will be no different,” chimed Coinvo.
Another crypto analyst, DevKhabib, offered a contrasting perspective, highlighting February as a good month for Bitcoin. The analyst identified the $91,000 level as a crucial support floor for the Bitcoin price. He emphasized that the price rebounded strongly, expressing optimism about the market’s future.
“$91,000 seems to be a strong support for BTC as we bounced directly off it. Let us hope we continue to range above $94,000 so the market can recover a little bit. February usually is green, and I think we will still get a bullish February. A bad beginning makes a good ending,” the analyst expressed.
Moreover, according to data from IntoTheBlock, the range between $95,620 and $98,505 represents significant support for Bitcoin price
Any efforts by the bears to push the price below this level would be met by buying pressure from approximately 1.74 million addresses who bought BTC at an average price of $97,195.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin
Trump’s Sovereign Wealth Fund – Could Bitcoin Be in Play?
President Donald Trump signed an executive order on February 3, calling for the creation of a sovereign wealth fund.
This follows his previous order establishing a national digital asset stockpile, signaling an increased focus on strategic financial reserves.
Bitcoiners Eye Trump’s Sovereign Wealth Fund
The executive order directs the Secretary of the Treasury and the Secretary of Commerce to devise a comprehensive plan within 90 days for creating the fund.
“The United States can leverage such returns to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish long-term economic security, and promote US economic and strategic leadership internationally,” the order read.
For context, sovereign wealth funds are state-owned investment funds that manage surplus reserves. These are typically sourced from trade surpluses, commodity revenues, or fiscal excesses.
These funds are invested in a diverse range of assets, including stocks, bonds, real estate, and infrastructure, both domestically and internationally. The goal is to ensure long-term financial stability and economic growth.
Although the executive order did not explicitly mention Bitcoin (BTC) or other cryptocurrencies, the announcement sparked enthusiasm among Bitcoin advocates because of Senator Cynthia Lummis’ response. Lummis, a well-known advocate for the Strategic Bitcoin Reserve and chair of the Senate Banking Sub-committee on Digital Assets Committee, reacted to the news on X (formerly Twitter).
“This is a ₿ig deal,” she posted.
Her use of the “₿” symbol fueled hopes of Bitcoin’s inclusion in the fund.
“After Trump signs the order, US will buy Bitcoin for sovereign wealth fund and they will call it as strategic Bitcoin reserves,” one user replied on X.
Notably, the market odds of Trump establishing a Bitcoin reserve in the first 100 days on the prediction platform Polymarket improved to 18% after the order. The odds plummeted from 48% on Inauguration Day to 13% by February 1.
Trump’s earlier executive order on the digital asset stockpile also broadly defined “digital assets” without explicitly mentioning Bitcoin.
“The term “digital asset” refers to any digital representation of value that is recorded on a distributed ledger, including cryptocurrencies, digital tokens, and stablecoins,” the order stated.
Crypto Momentum Grows at State Level
Meanwhile, amid the speculation, several US states are advancing their own cryptocurrency initiatives. Oregon, New Jersey, Mississippi, and Indiana have recently introduced bills to foster crypto adoption and regulatory clarity.
Oregon’s HB2071 grants blockchain users specific rights. It prevents state and local governments from restricting digital asset activities. It also exempts certain blockchain transactions from the Oregon Money Transmitters Act.
New Jersey Assembly Bill 2249 (Digital Asset and Blockchain Technology Act) establishes a regulatory framework for digital asset businesses and creates a Digital Asset Enforcement Fund for oversight.
Mississippi’s HB 1590 (Blockchain Basics Act) prohibits state and local governments from implementing central bank digital currency (CBDC) and safeguards self-custody rights. It also exempts crypto transactions under $200 from capital gains tax and removes licensing requirements for mining and staking operations.
Indiana House Bill 1156 protects the right to use, store, and accept digital assets. It prevents local restrictions on crypto transactions and ensures digital asset mining is classified as a permitted industrial activity.
Indiana has also previously introduced House Bill 1322, which promotes blockchain adoption and Bitcoin investment strategies.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin
US-China Trade War Rattles Crypto – What’s Next for Bitcoin?
China recently announced a 10% tariff on US crude oil and agricultural machinery in response to US tariffs on all Chinese imports, reigniting fears of another prolonged trade war.
The ongoing trade dispute between the US and China has escalated further, triggering significant volatility in global markets, including cryptocurrencies.
Market Fallout and Crypto Reaction to US-China Trade Wars
China imposed a 15% tariff on US coal and LNG while adding a 10% levy on crude oil and farm equipment. The move comes after US President Donald Trump reintroduced aggressive trade policies to curb China’s economic influence.
While market sentiment initially soured, some analysts argue that China’s latest tariffs may not have as severe an impact as initially feared. According to The Crypto Lark Davis, China imports relatively little from the US in the affected categories.
“China imports 6% of its LNG from the USA. 4 million tons versus USA total export globally of 87 million tons in 2024. Coal the USA ships about 6% of its coal exports to China. For agricultural equipment, could not find any firm numbers so it seems to be small. This is not the equivalent of the Mexico and Canada trade disputes,” Davis explained.
Davis believes the market’s reaction may be overblown and warns against panic-driven selling. Borovik, another popular user on X, echoes this sentiment, stating that traders dumping crypto in response to the tariffs will likely regret it in 48 hours as the market stabilizes.
In contrast to the US-China tensions, a temporary trade reprieve between the US and Canada eased market concerns. As BeInCrypto reported, Trump agreed to delay tariffs on Mexico and Canada for 30 days. In return, there will be enhanced border enforcement against drug trafficking and illegal migration.
The development prompted a quick recovery for Bitcoin, which briefly reclaimed above the $100,000 milestone. This suggested that crypto markets remain highly reactive to geopolitical shifts. However, analysts remain cautious, with many expecting continued volatility as the trade war evolves.
Andrew Kang, a well-known crypto market analyst, warned that Ethereum (ETH) prices could retreat to the $2,200-$2,400 range if the trade war intensifies. As of this writing, the Ethereum price was $2,722, up by almost 8% since the Tuesday session opened.
“Back to 2200-2400 if China trade war is real,” Kang wrote.
In hindsight, over $2 billion had been wiped out from the crypto market on Monday in a historic liquidation event. Despite the panic, seasoned investor Robert Kiyosaki remains bullish on Bitcoin. He labeled the price drop a “buying opportunity,” emphasizing that crypto remains a hedge against inflation and economic instability caused by geopolitical tensions.
The historical resilience of Bitcoin and cryptocurrencies in turbulent times remains a key talking point.
Jeff Park, head of Alpha Strategies at Bitwise Asset Management, foresees Bitcoin’s inevitable rise despite short-term fluctuations. He argues that the crypto market is becoming a haven for investors seeking alternatives amid global trade uncertainty.
“Tariffs might be just a temporary tool, but the permanent conclusion is that Bitcoin is not only going higher—but faster,” Park wrote.
While the trade war introduces fresh volatility, seasoned traders highlight the importance of strategic decision-making. As the US and China continue their economic standoff, the crypto market will likely experience further swings. However, long-term holders and institutional investors may find opportunities in the chaos.
BeInCrypto data shows BTC was trading at $99,474 as of this writing, up by almost 6% since Tuesday’s session opened.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin
MicroStrategy Buys No Bitcoin, Breaking 12-Week Streak
According to Michael Saylor, MicroStrategy finally broke its 12-week streak of consecutive weekly Bitcoin purchases. The firm did not sell any shares of Class A common stock this week, nor did it use proceeds to buy BTC.
The firm may owe billions of taxes on its unrealized gains, and Bitcoin’s price is proving extremely volatile due to US tariffs and political instability. However, Saylor gave very little indication of MicroStrategy’s next move.
MicroStrategy Stops Buying Bitcoin
Since Michael Saylor began directing MicroStrategy to acquire Bitcoin, the firm has become one of the world’s largest BTC holders.
Since late October, the firm has made at least one purchase every week, going from huge buys to slowly diminishing acquisition sizes. MicroStrategy began issuing more shares to ramp up the acquisitions, but Saylor just announced a general pause:
“Last week, MicroStrategy did not sell any shares of Class A common stock under its at-the-market equity offering program, and did not purchase any Bitcoin. As of February 2, 2025, we hold 471,107 BTC acquired for ~$30.4 billion at ~$64,511 per Bitcoin,” Saylor claimed.
This announcement has left the community somewhat confused. In December, there were credible rumors that MicroStrategy may pause its Bitcoin purchases in January.
However, this pause did not happen, and the company’s acquisitions actually increased towards the end of the month. So, it’s surprising that the firm halted its purchases, seemingly when the BTC price presented notable buying opportunities last week.
A few factors may have contributed to this switch in tactics. For one thing, Bitcoin’s value is in a tough spot. Since the threat of US tariffs against Mexico, Canada, and China, it and the broader crypto market took a nosedive.
With further economic chaos looming on the horizon, MicroStrategy may take a conservative approach to Bitcoin investment.
There is also another factor. Although BTC took a dive today, it’s been in a sustained bull market otherwise. MicroStrategy may owe billions in unreleased gains regarding its Bitcoin prices, which would add more complexity to a delicate situation.
For now, it’s difficult to predict where the company will go from here.
One important consideration is the pause on stock sales alongside BTC buys. MicroStrategy has been using these to fund its Bitcoin accumulation, and the firm may stop committing so heavily to the asset.
Michael Saylor did not give any direct indication of whether it will resume these purchases soon. Many factors are in the air right now, but the firm remains committed to its Bitcoin-first strategy.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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