Overview of the crypto market in February 2025

Macroeconomic Situation

In February 2025, the U.S. economy is facing multiple challenges: a rebound in inflation, a segmented labor market, and slowing growth. The January CPI rose year-on-year to 3.0%, exceeding market expectations. The resilience of the labor market has weakened, with the unemployment rate slightly declining to 4.0%, but significant differentiation between industries is evident. The economy exhibits stagflation-like characteristics, with manufacturing PMI expanding, but the services PMI falling below the threshold. The Federal Reserve faces a policy dilemma, with the first interest rate cut now expected to be delayed until June.

Crypto market performance

The crypto market was sluggish in February, with an average daily trading volume of $146.5 billion, a 17% year-on-year decline. The total market capitalization fell to $3.03 trillion, down 18% compared to the previous month. BTC's market share remained at 59.8%, while ETH's market share fell below 10%. The LIBRA incident had a huge impact on the Meme market, undermining investor confidence. Market attention is gradually shifting towards VC coin projects, with new listings like PI, KAITO, and IP receiving widespread attention.

Main Capital Flow

BTC ETFs saw a net outflow of $8.886 billion this month, while ETH ETFs had a net outflow of $2.1 billion. Despite this, the stablecoin market continues to grow robustly, with USDC and PYUSD circulations increasing by $3.63 billion and $290 million, respectively.

Mainstream Cryptocurrency Price Analysis

BTC has broken through a key support level and is facing a dense selling pressure zone between $86,000 and $89,000. If it can form a "triple bottom" at $75,200, there may be a possibility of a short-term rebound. ETH continues to show weakness, and the Bybit theft incident has triggered investors to sell spot. SOL is affected by liquidity squeeze, with $130 being a key support level; if it breaks below this, it may further decline.

Important Event Review

1. The LIBRA Meme coin promoted by the President of Argentina has crashed, leading to a collapse of market confidence.
2. The BNB Chain quickly rose to prominence, attracting attention thanks to CZ, becoming a new focal point in the market.
3. Bybit was attacked by hackers, losing $1.46 billion, marking the largest theft incident in the crypto market.

Future Outlook

1. BNB Chain is expected to lead a new wave of Meme frenzy, and other public chains may follow its marketing strategy.
2. VC coin has been performing actively, and with high control and continuous positive news releases, it is expected to regain market favor.