Ethereum is currently trading around $3,670, having struggled to maintain a price above $3,700, which reflects its underperformance compared to Bitcoin.

MicroStrategy kicked off 2025 by acquiring 1,070 Bitcoins for $101 million, bringing its total Bitcoin holdings to 447,470 BTC, valued at approximately $44.3 billion.

Analysts express caution regarding the current bull cycle, citing ongoing macroeconomic uncertainties that may impact future price movements.

The company is raising capital instead of using cash, which increases financial risk, especially as it diverts focus from core business operations.

Speculation is rife about whether the recent price fluctuations will lead to a sustained rally in 2025 or if they are simply short-term reactions to upcoming events.

Alex Kuptsikevich, chief market analyst at FxPro, suggests that the current market situation resembles a classic technical correction, indicating potential price movements based on Fibonacci retracement levels.

Market volatility is anticipated to persist, prompting traders to watch for consolidation or deeper pullbacks before re-entering positions.

Investor expectations for Federal Reserve rate cuts in 2025 have diminished, with only a 37% chance for a cut in March, down from nearly 50% just a week earlier.

Despite some positive trends in the market, risks persist due to the Federal Reserve's hawkish policies and a notable decline in retail participation, with transaction volumes for trades under $10,000 at their lowest since September 2024.

Concerns are growing that a more lenient regulatory environment could enable professional traders to exploit the market, potentially harming smaller investors.

Speculation about the impact of the 2024 U.S. election on crypto regulations is waning, which could stifle future growth in the cryptocurrency market.

ChainCatcher advises readers to approach blockchain investments with caution, emphasizing the importance of risk awareness in the volatile market of virtual tokens.