The Thai cryptocurrency market is witnessing significant fluctuations, driven by major sell-offs across leading digital currencies as traders react to economic uncertainties and increasing selling pressures. Notably, Bitcoin (BTC) plummeted to its lowest point in three months, falling below $88,000, with its value recording nearly a 10% decrease within 24 hours. Other significant cryptocurrencies including Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) followed suit, all experiencing double-digit declines, igniting concerns across the market.
According to CoinGlass, liquidations of trading positions totaling over $800 million occurred within just one day, indicating the severe impact of the recent market volatility. Market analysts attribute this downturn to growing anxieties surrounding U.S. economic policy decisions and the crypto sector's regulatory outlook. "The significant market sell-off was precipitated by growing concerns about economic policies and the upcoming tax impacts on cryptocurrency holdings," remarked analysts closely monitoring the crypto fluctuations.
During this turbulent period, Bitcoin reached $87,115 before making a slight recovery at $87,657, demonstrating the volatility's dramatic effect. Market experts point to uncertainties surrounding Bitcoin as legal capital reserves, alongside unsuccessful state-level Bitcoin fund proposals, as factors amplifying this sell-off. "With the overall cryptocurrency market down nearly 10% in a day, confidence is shaken," shared leading analysts, foreseeing challenging times for investors.
Solana was particularly hard-hit, dropping nearly 13.7% to about $135.46, marking its lowest value since September 2024. The coin has suffered severe price cuts, witnessing declines surpassing 46.6% over the past month. Similarly, DOGE saw its value decline by 13%, trading at around $0.1192, the lowest it has been since November 2024. Such declines are substantiated by unfavorable news related to influential figures like Elon Musk, along with controversies linked to DOGE-related projects.
Ethereum also faced turbulence, dropping more than 11% to $2,374, replicative of the general bearish trend experienced across altcoins. Collectively, the entire cryptocurrency market's valuation slid down to $2.98 trillion, reflective of mounting investor fears, as indicated by the Crypto Fear & Greed Index, which has reached its lowest point since September 2024 at 25.
The rallying concern stems from anticipated economic policies by the U.S. government aiming to manage inflation and impending tax adjustments, which have raised alarms over any positive outlook for BTC and its companions. Despite Solana maintaining a market capitalization of approximately $70.6 billion, the broader market sentiment remains under pressure.
Traders and investors are now bracing for potential effects resulting from the upcoming release of over 11 million Solana tokens, worth collectively around $1.5 billion, anticipated for March 1. This event could exacerbate the current volatility, compounding existing pressures. Analysts warn these factors combined could bring Solana down closer to the $100 threshold as fear grips market participants.
With this backdrop of uncertainty, discussions around recovery suggest investors may need to remain vigilant and proactive. Market conditions are fluid, and there lies potential for both recovery and additional setbacks as influences from the economy and regulatory frameworks evolve.
The Thai crypto market is undoubtedly at a crossroads. With significant price fluctuations and selling pressures at play, both traders and analysts are left contemplating the next steps. Observing future trends and policy changes will be pivotal for predicting whether the market can regain its former strength or if additional volatility lies ahead.