A pseudonymous crypto trader Sykodelic notes that despite Donald Trump’s pro-crypto moves, the market keeps on retracing.
Sykodelic claims that the crypto market, especially Bitcoin, has lost any sort of rhyme or reason.
Traders await for the altcoin season which is generally followed by Bitcoin’s dominance topping at 60%.
The crypto market is inherently volatile, but there is a limit to what the traders can stomach. Since the beginning of the year, market-leading digital asset Bitcoin soared to a new all-time high of $109,000 in late January and then proceeded to crash to the $91,000 support level on Monday as the broader market also tanked with Bitcoin.
The crypto market saw significant changes in 2024, including the approval of spot crypto exchange-traded funds (ETFs) and the first pro-crypto US President being voted to power. It is clear that the market is not following previous patterns anymore. As a result, traders are not pleased with pseudonymous crypto trader Sykodelic, claiming that the “market is totally cooked” in a Tuesday X .
Sykodelic noted that the crypto market “just keeps on retracing” despite the numerous pro-crypto initiatives taken by Trump. They said that the market has “lost any sort of rhyme or reason,” adding that almost every trader is confused about what to do next. Meanwhile, another prominent trader on X The Bitcoin Therapist that “something is terribly wrong with the market’s pricing of Bitcoin”.
At the time of writing, Bitcoin is trading at $97,508.76, with a 1.29% decline in prices in the past day. The digital asset has already crashed 10% from its all-time high, as shown by the from CoinMarketCap.
Altcoin Season Delayed
Crypto market analysts reached a general conception that Bitcoin’s dominance would top in 2025 after Donald Trump’s inauguration as the US president. After the inauguration, traders expected the capital to flow into altcoins, resulting in a decline in BTC dominance and the beginning of the . However, this did not happen.
Following Trump’s inauguration, Bitcoin’s volatility has skyrocketed while the altcoin sector fails to print monumental gains, like previous cycles. Several major cryptocurrencies, including Cardano , Chainlink , and Avalanche , have yet to break their all-time highs seen during the previous cycle. BTC currently has a market dominance of 60.3%, over 7% up in the past month. This indicates that traders are still waiting for a push to divert their funds to altcoins.
The altcoin market cap chart provided by TradingView excludes Bitcoin and Ether . The Relative Strength Index (RSI) reads a value of 40.46, which means that the bears are currently in control. The gradient of the line suggests stagnation in the price of altcoins as Bitcoin’s volatility has struck fear in the hearts of traders.
Additionally, as February began, the daily chart above shows that altcoin market cap action lost the 20-day exponential moving average (EMA). In order to continue the bullish momentum, bulls need to reclaim this crucial level, which stands around the $900 billion valuation.