- Bitcoin surges back above $100,000 after tariff pause and global correction.
- The altcoin market awaits regulatory clarity, focusing on Bitcoin, Ethereum, and Solana.
- Ethereum faces monetization and platform issues, with key price levels at $2,700 and $3,000.
The crypto market has seen a rollercoaster ride, with a huge correction that erased billions in capital. This sharp drop followed escalating global trade tensions, after the US President’s executive order placed tariffs on goods from China, Canada, and Mexico.
But, just when things seemed hopeless, the market began to show signs of a strong comeback. Bitcoin, which had dropped to nearly $90,000, is now back above $100,000. The turnaround happened when Donald Trump decided to pause the tariff plans, after a deal with Mexico’s President Claudia Sheinbaum to delay them for a month.
Matt Hougan, CIO at Bitwise Asset Management, noted that liquidations can happen quickly, one after another. But at the bottom, buyers are always waiting for the inevitable rebound, he added. This cycle is a familiar part of crypto, and those who know it well understand these price swings come with the territory.
Will the Altcoin Rally Be Postponed?
Hougan said the altcoin market is currently on hold, waiting for the regulatory clarity needed to start the next growth phase. Instead of funds quickly moving from Bitcoin to Ethereum and then down the market cap ladder, investors are more interested in assets like Bitcoin, Ethereum, and Solana.
The market has changed. It’s gone from one driven mostly by speculation to one that now looks at fundamental utility. It’s clear that use cases across blockchain platforms are growing. Ethereum’s ability to generate revenue, Solana’s growing user base, and the solid fundamentals of various networks are now key topics of discussion, he mentioned.
Ethereum: A Contrarian Play
Hougan thinks that Ethereum, specifically, is a contrarian play in the crypto world. The platform is central to trends like stablecoins, tokenization, and the merging of AI with cryptocurrency, putting it right at the heart of these movements.
Related: Ripple CTO on Bitcoin Crash: More Sellers Than Buyers
Still, Ethereum has had its own internal challenges, especially in making money from its user growth and improving its architecture. Until these issues are fixed, which could take up to six months, Hougan believes Ethereum might have a tough time, making it a harder asset for long-term investors.
Ethereum Price: Key Levels to Watch
Ethereum’s price has recovered somewhat after a sharp drop, with the key level to watch at around $2,700. For a bigger rally, the price needs to break above resistance, specifically the $2,970 to $2,910 range, to confirm a sustained upward movement.
Related: Fed Chair Powell: Are Banks Ready to Serve Crypto Customers?
If Ethereum can break and hold above $3,000, it will signal a shift towards a stronger bullish trend. Ethereum’s all-time high was on November 16, 2021, at $4,891.70.
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