It was a crazy race for the cryptocurrency industry this year. After a brief optimism in early January, almost all the upper cryptocurrencies are now down for the year. And, although there have been promising signs of an imminent rally of the Haussier market, most of the best cryptos continue to tumble.
If you feel confused by all the volatility of the cryptography market at the moment, there are three pieces that should be on your radar: Bitcoin (BTC -0.60%)),, Ethereum (Eth 1.69%))And Xrp (XRP -1.61%)). Combined, they can offer many clues to the place where the crypto then heads.
Bitcoin
At the top of the list is Bitcoin. If history is a guide, the cryptography market is higher or lower depending on where Bitcoin goes. Indeed, Bitcoin represents 60% of the total value of the cryptography market, and it is the only cryptocurrency widely owned by retail and institutional investors.
So far, Bitcoin is down 5% for the year. But that doesn’t tell the whole story. Bitcoin is down almost 20% over a summit of $ 109,000 on January 20. This date is of course important because it was the day of the inauguration of President Donald Trump.
It is therefore quite easy to bring together a story here, right? Bitcoin reached the $ 100,000 mark in December, on the basis of all the Pro-Crypto optimism surrounding the Trump campaign. He climbed even higher at the beginning of 2025, on the basis of even more euphoria surrounding all the imminent changes to come soon for cryptographic industry. And then, just as suddenly, the price of bitcoin crashed while the euphoria was upset and the reality settles.
But don’t let yourself be taken by looking at the daily movements of Bitcoin prices. There is simply too much volatility at the moment, moving from top to bottom with astonishing speed.
Instead, keep your eyes on the entrances and monthly outlets of Bitcoin funds on Bitcoin (ETF). This will tell you what investors really think bitcoin. Currently, some of the largest institutional investors seem to buy bitcoin on the decline. They take a long -term look at Bitcoin and decide that they like what they see.
Ethereum
We can say that Ethereum was the most disappointing cryptocurrency in 2025. It is now down 33% for the year and shows no real sign to overthrow its slide. This is particularly important to note, because Ethereum is always the second largest cryptocurrency in the world. While Ethereum does not have the weight of Bitcoin, it is still large enough to weigh heavily on the minds of cryptographic investors.
Ethereum is always the dominant player with regard to decentralized finance (DEFI), the Blockchain game, the web3 and almost all the other slots in the blockchain industry. In the previous rally of the Haussier market of crypto, Ethereum was the driving engine behind the craze of non -bubble token (NFT) and the speculative frenzy surrounding the metavese.
Image source: Getty Images.
This is why it is so important that Ethereum returns things – and quickly. If Ethereum continues to fall, then all the other blockchain and crypto world sectors will also take a hit. All depend on Ethereum, on one degree or another, for their success.
In this spirit, the Trump administration seems to do everything it can to push Ethereum above. For example, the World Liberty Financial affiliated to Trump regularly bought Ethereum for its portfolio. And, on March 2, Trump said that he would include Ethereum in his proposed Crypto strategic reserve. This would guarantee the regular purchase of Ethereum by the United States government for the years to come.
Xrp
The third and last piece of the puzzle is XRP. It is now up 400% since the elections and is currently the most efficient market-growing cryptocurrency of 2025.
In many ways, XRP – which has been assailed by regulatory problems in the past four years – is the best example of what can happen when a pro -business and pro -Crypto administration manages the ship. In just two months, the head of the SEC has been replaced and a number of prosecution linked to the crypto under the instance brought by the SEC have been abandoned. At the same time, the scene is ready for a significant overhaul of how the United States regulates crypto. In theory, all of this is very optimistic for XRP.
XRP’s performance is an important decisive test for the market of the Trump administration regulation approach. Remember that XRP’s price had stopped $ 0.50 in November 2024, and things seemed to be at best risky for its future. But then Trump was elected, and the price of XRP exploded. So keep an eye on how XRP works in the coming months.
Which of these pieces should you buy?
Of the three parts mentioned above, the only obvious purchase is Bitcoin. Even with his early collapse, he could still end up having a year of monster. The best investment companies continue to double their early price forecasts for Bitcoin. And this means that Bitcoin could reach $ 200,000 by the end of 2025.
Consequently, I am optimistic about Bitcoin in the long term, and quite willing to be silent and to wait for this current fight of extreme volatility of the market.
