Market update
Cointree Crypto Market Update - February 5th 2025
Market report for traders
🔮 BTC and altcoins
Over the last 7 days, Bitcoin ends at AU$157,776 moving -3.13% at the time of writing. Meanwhile, Ethereum ends at AU$4,392 moving -11.82% week-on-week. On the Altcoin side, Solana -9.04%, Dogecoin -18.16%, and XRP -17.48% change.
🗞 What’s happening in the news?
🏓 A Hard-to-Ignore Drop — and a Swift Bounce Back
It was hard to ignore last week’s significant drop in both crypto and stock markets. President Donald Trump’s sudden announcement of new tariffs on Canada, Mexico and China sent shockwaves across global finance. Crypto wasn’t spared, with mass liquidations totalling around US$8–10 billion. Bitcoin’s dipping price prompted further sell pressure across the board, spilled over into altcoins, which suffered some of the steepest declines of the week.
Yet, only days later, markets staged a comeback after Trump put those tariffs on hold — at least temporarily — for Canada and Mexico.
🤕 Coins Most Affected by the Dip
Trump Coin
- One of the biggest losers was the Official Trump (TRUMP) meme coin, built on Solana. It plummeted by 37%. While meme coins are notoriously volatile, the political spotlight on this one magnified the frenzy.
Ethereum
- Ethereum also took a significant hit, dropping as much as 18% from its earlier levels. Prices temporarily plunged to around AU$3,790, contributing a large chunk to the overall crypto market’s liquidations.
Korean Bitcoin - The “Kimchi Premium”
- In South Korea, Bitcoin was trading at roughly 12% higher than on other global exchanges at one point — the so-called “Kimchi Premium.” Due to strict capital controls, money can be harder to move in or out of the country, pushing local BTC prices higher when there’s a surge in buying. The premium has since eased to around 7%, but it still reflects the strong appetite for crypto among South Korean traders.
⚙️ Ethereum’s Gas Limit Rises
In more technical news, Ethereum increases in the network’s gas limit to over 31 million gas units. Since more than half of the validators agreed, the gas limit was automatically adjusted — with no hard fork required.
This marks the first gas limit hike under Ethereum’s proof-of-stake system.
“We want to ensure the network can scale with technology improvements, without waiting for major forks,” Ethereum co-founder Vitalik Buterin said.
Despite some concerns about potential network stress, many believe the higher gas limit will help accommodate more transactions and smart contracts.
📖 What we’ve been reading
U.S. Bitcoin Reserve May Be Coming, But States Are Winning the Race
Millions of Americans may soon find out they're crypto investors when their states leap into the markets even before the feds figure out what to do.
Solana and Ethereum Rival Berachain Launching This Week With BERA Airdrop
Berachain will launch its mainnet on Thursday after a year of teasing, with an airdrop of BERA coming for eligible early users.
BTC dominance nears 4-year high: 5 things to know in Bitcoin this week
Bitcoin crypto market cap dominance spikes as Trump trade war fears take over; altcoins see "capitulation wicks."
*Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.*
