Crypto Market Crash 2025: What Really Happened?
The cryptocurrency market is currently experiencing significant turmoil, with sharp declines in several major digital assets.
Here, we invite you to explore the factors driving the downturn, the impact of macroeconomic policies, and the potential for recovery in the near future.
Sharp Decline of Ethereum and the Rise of Gold
Quoting from the Pintu media, Ethereum (ETH) has dropped by more than 44% in the first quarter of 2025, marking its worst performance since 2018.
In contrast, the price of gold has surged by more than 20% over the same period. This increase is equivalent to around IDR 67,000 per gram in the past three months.
This performance gap reflects a shift in investor interest from high-risk assets like cryptocurrency to safer havens like gold.
The Impact of Macroeconomic Policies on the Crypto Market
Trade and tariff policies implemented by former U.S. President Donald Trump have added uncertainty to the global economy.
These measures have raised concerns among investors, prompting them to move away from risky assets such as cryptocurrencies.
Additionally, the weakening of the U.S. dollar and pressure on bond yields have further dampened market sentiment toward crypto.
Correlation Between Gold and Ethereum
Historically, there has been an interesting correlation between the performance of gold and Ethereum (ETH). When gold enters a phase of consolidation or stagnation, ETH tends to perform better.
However, gold is currently in an overbought condition, while ETH continues to weaken against Bitcoin (BTC), having fallen up to 70% since the end of 2022.
This illustrates that the crypto market is becoming increasingly influenced by global macroeconomic factors, not just community sentiment.
Market Psychology and Recovery Potential
According to the “Wall Street Cheat Sheet” theory, altcoins may currently be in the “Depression” phase—where prices hit rock bottom and investor confidence is at its lowest.
History shows that this phase often marks the turning point toward recovery. However, such recovery takes time and is usually supported by external factors such as a decline in gold prices or shifts in economic policy.
Ethereum (ETH) is showing signs of a bullish divergence, which could indicate a potential trend reversal in the near future.
Even so, investors are advised to remain cautious and focus on projects with strong fundamentals and real-world utility.
In facing crypto market volatility, it is crucial for investors to stay alert, conduct thorough research, and consider the macroeconomic factors influencing the broader market.
