The crypto market has been stuck in correction mode since the start of 2025, with Bitcoin (BTC) and Ethereum (ETH) leading the downturn. What started as optimism over the US administration’s shift to a pro-crypto stance under President Donald Trump quickly turned into a classic sell-the-news event.

Now, with the market shedding trillions in value and investor sentiment at a crossroads, the big question is – how much deeper could this correction go? And more importantly, what could trigger the next big move?

Let’s break down the key trends shaping the crypto market right now.

Crypto Market Crashes

The total cryptocurrency market capitalization has fallen by nearly $1.4 trillion over the past two months, hovering around $2.7 trillion as of Tuesday, March 11, during the mid-London session.

The market is facing increased uncertainty, especially due to reduced demand from large investors. Bitcoin’s futures open interest (OI) has dropped by nearly $20 billion, now sitting at around $46 billion. Ethereum’s OI has also declined by more than $12 billion, currently hovering around $18 billion.

The ongoing tariff wars have triggered losses in major stock indexes, which has spilled over into the crypto market. At the same time, more investors are shifting to the gold market as a hedge against short-term volatility.

Bitcoin’s Price Action Holds the Key

With most of the altcoins trapped in a correction mode, especially after Ether’s price dipped below $2k, all focus is on Bitcoin price action in the coming days. As the first quarter of 2025 approaches the end, the Bitcoin price cannot afford to consistently close below $78k if the rising trend persists in the coming quarters.

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As previously reported by Coinpedia, the crypto market is expected to regain momentum and move toward a parabolic rally once major central banks conclude their quantitative tightening measures. A clearer roadmap from the Trump administration on implementing its strategic Bitcoin reserve plan could also serve as a major catalyst for renewed bullish sentiment.

The market’s next move hinges on key policy shifts and economic trends, making 2025 a year to watch for digital assets.