Bitcoin has skyrocketed to $109K, hitting a new high since Donald Trump’s re-election. But the excitement isn’t universal – Ethereum is still stuck 68% below its 2021 peak, and the market is showing signs of weakness. Fear is creeping in as Bitcoin risks dropping below $80K, putting intense pressure on altcoins.
The latest market shake-up comes after Trump’s criticism of Russia’s ceasefire stance, adding fuel to an already fragile situation. His ongoing tariff war and failed Bitcoin reserve plan have only made things worse. With investors on edge and the market at a crossroads, the big question is – what happens next?
Ethereum is still following the movements of high-risk assets, but the outlook remains uncertain. Bloomberg’s senior commodity strategist, Mike McGlone, warns that if US stocks continue to fall, Ethereum could drop to $1,000 this year. A climb back to $2,000 might indicate some strength, but with Bitcoin already looking shaky, altcoins could suffer even more.
McGlone points out that Bitcoin started in 2009 as a digital alternative to gold and silver. Over time, it has grown into a massive ecosystem, pulling Ethereum and other altcoins along with it. But the growing speculation in crypto markets is raising concerns.
When an asset becomes too dependent on hype and constant growth, regulators tend to step in. If that happens, Ethereum could face serious pressure in the future.
Unlike crypto, gold is having an exceptional year. It has risen 26% in 2024, performing even better than the S&P 500. With rising inflation fears and geopolitical tensions, many investors are turning to gold as a safer bet.
Another worrying signal is the gold-to-copper ratio, which is climbing to levels last seen during economic downturns in 2009 and 2016. If this trend continues, it could be a sign that more economic trouble is ahead.
Ethereum’s future is unclear. If market conditions improve and investors regain confidence, ETH could climb back to $2,000. But if the downturn continues, another steep drop is possible.
Not everyone believes Ethereum will bounce back. Crypto analyst Quinn Thompson from Lekker Capital calls ETH a “dead investment,” citing falling usage and declining transaction fees. While Layer-2 solutions are gaining traction, some argue they benefit other tokens more than Ethereum itself.
Still, there are reasons for optimism. ETF inflows have reached 4 billion, and the upcoming Pectra upgrade could provide a boost. BlackRock believes that staking-enabled ETH ETFs could be the biggest breakthrough yet.
For now, Ethereum investors are left waiting to see which direction the market takes next.
Crypto is no stranger to wild swings, but with uncertainty piling up, this might be one of its biggest tests yet.
Gold is up 26% in 2024 due to inflation fears and global tensions, making it a safer bet than volatile crypto markets.
Bitcoin’s downturn impacts ETH, as crypto markets move together. If BTC falls, altcoins like Ethereum often face steeper losses.
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