The crypto market has been down for a couple of days after starting 2025 on a high note. With negative performance for most cryptocurrencies, the red color takes over the crypto dashboard. But is that significant alone? Not really. Here is a market analysis of some of the major cryptocurrencies impacted by the current market crash, and what the numbers can tell us about their actual performance in 2025.
Crypto Crash Market Analysis: Performance of Major Cryptocurrencies
Bitcoin (BTC)
As the market leader, Bitcoin has experienced a price correction:
- Low on January 7: $92,540
- Current Price: Hovering near $93,400, down 2.96% in the last 24 hours.
Despite the drop, Bitcoin’s current price is higher than its lows from December 2024 and January 2024.
Ethereum (ETH)
Ethereum, the second-largest cryptocurrency, has also faced bearish pressure:
- Low on January 7: $3,208
- Current Price: Trading near $3,320, down 2.50% in 24 hours.
Like Bitcoin, Ethereum remains resilient compared to its previous month and year lows.
Cardano (ADA)
Among the top altcoins, Cardano has been one of the hardest hit:
- Current Price: $0.91, down 8.52% in the last 24 hours.
Cardano’s significant decline highlights the broader struggles of altcoins in this downturn.
Dogecoin (DOGE)
As the leading meme coin and one of the top 10 cryptocurrencies by market cap, Dogecoin has not been spared:
- Current Price: $0.33, down 4.96% in 24 hours.
Dogecoin’s sell-off reflects broader market sentiment affecting both altcoins and meme coins alike.
Comparison with Past Lows
Despite the corrections, Bitcoin and Ethereum continue to trade at stronger levels compared to their lows from December 2024 and January 2024:
Bitcoin (BTC):
- January 2024 Low: $38,514
- December 2024 Low: $91,378
- Current Price: $93,417
Ethereum (ETH):
- January 2024 Low: $2,095
- December 2024 Low: $3,099
- Current Price: $3,321
This resilience underscores the maturing market for top cryptocurrencies, even amidst volatility.
WHY is the Crypto Market Down
The cryptocurrency market has faced significant declines since January 7, 2025, continuing into January 9. As per the previous market analysis of the downturn impact on the cryptocurrencies, what can be concluded is that market leaders Bitcoin (BTC) and Ethereum (ETH) have seen notable corrections, top altcoins like Cardano (ADA) and meme coin Dogecoin (DOGE) have been hit harder, amplifying bearish sentiment. Yet, despite this, current prices remain higher than their lows from the previous month and the same period last year. But what are the factors behind the crypto market crash?
Top 3 Factors behind the crypto market crash
1. Stronger U.S. Jobs Data
The U.S. job openings data, reported at 8.096 million, significantly surpassed the consensus estimate of 7.605 million.
- Impact: The robust labor market reduces the likelihood of Federal Reserve rate cuts in the near term.
- Effect on Crypto: Tighter monetary policies generally reduce liquidity, creating bearish pressure on risk-on assets like Bitcoin and altcoins.
2. New Pandemic Fears
Concerns over a potential new virus, HMPV (Human Metapneumovirus), are unsettling global markets, evoking memories of early COVID-19 fears.
- Recent Events: Reports of several global cases on January 7 have sparked investor panic.
- Market Reaction: Increased uncertainty has driven investors away from volatile assets like cryptocurrencies, intensifying the sell-off.
3. Rising Oil Prices
Actions by Russia and OPEC to tighten oil supplies have caused a surge in oil prices.
- Economic Implication: Higher oil prices exacerbate inflation concerns, reducing the likelihood of aggressive rate cuts by the Federal Reserve.
- Crypto Connection: Inflationary pressure dampens risk appetite, leading to increased selling in crypto markets.
Additional Factors to the Crypto Market Downturn
Profit-Taking by Investors:
- After strong gains in 2024, many investors are securing profits, contributing to short-term sell-offs.
Shifts in Market Sentiment:
- Anticipation of policy changes and macroeconomic indicators often drives rapid adjustments in crypto markets.
Conclusion
The recent crypto market downturn is influenced by macroeconomic factors, including strong U.S. jobs data, pandemic fears, 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 sharper declines.
This environment underscores the importance of monitoring economic indicators and remaining cautious in navigating the volatile crypto market.
