Crypto Faces Pressure: Is It Time to Be Cautious in a Volatile Market?
The cryptocurrency market on Tuesday exhibited cautious dynamics, with selling pressure still dominating, especially in major assets like Bitcoin and Ethereum. According to market reports, Bitcoin's price is facing pressure, trading below a key area, and market sentiment remains dominated by investor fear, although some analysts still see potential for a rebound depending on liquidity and short-term market sentiment.
One interesting altcoin story comes from Trump Coin, a niche asset that is now down more than 93% since January 2025, reflecting the high speculative risk in a market that remains vulnerable to changes in market sentiment. The Fear & Greed Index also remains in Extreme Fear, confirming investor caution.
XRP and Ethereum: Sensitive to Sentiment, Investor Interest Increases
Some altcoins show different responses to market sentiment. XRP is known to be highly sensitive to market sentiment fluctuations, with the ratio of positive to negative comments dropping into the "fear" zone, which often triggers unexpected price movements even without new fundamental factors.
Meanwhile, there has been a surge in investor interest in Ethereum (ETH), although network activity has not fully followed the price increase. On-chain data indicates a risk of overheating, a situation where the price rises rapidly but volume or fundamental activity remains weak.
Pressure on Bitcoin and Influential Corporate Strategy
On the Bitcoin side, the recent situation has been quite complex. Strategy, the largest corporate Bitcoin holder, reduced its Bitcoin purchases after a period of aggressive accumulation in early December, which also affected market sentiment. Nevertheless, Bitcoin's price movement remains within an attractive range for some traders.
In institutional developments, major banks such as JPMorgan Chase are reportedly considering opening crypto trading services to institutional clients, an indication that the adoption of digital assets by traditional financial institutions continues to grow despite the sideways market.
Source: Newsmaker.id
