JPMorgan analysts highlighted today a significant retreat in the cryptocurrency ecosystem from its post-2024 U.S. election highs amid growing concerns about the broader macro environment and risk-on equities.
The bank reported that the total cryptocurrency market capitalization ended February at approximately $2.74 trillion, marking its lowest point since the election in early November 2024.
The market downturn saw popular tokens decline by more than 20%, with some assets experiencing even steeper drops as prices pulled back and began trending negatively in the year-to-date for 2025.
Despite the downward trend in asset prices, trading volumes demonstrated resilience, with certain tokens and exchanges recording month-over-month growth.
JPMorgan noted that while the regulatory and administrative landscape is evolving to create a more favorable operating environment for cryptocurrencies, macroeconomic risks have overshadowed the progress made in the U.S. concerning policy clarity in the regulatory, legislative, and judicial spheres.
The investment bank also observed that gold maintained its status as a preferred "safe" asset, with its price increasing by an additional 2% while Bitcoin suffered an 18% decline in February.
The report also mentioned that the largest crypto hack on record took place within the same month, contributing to the unstable perceptions surrounding the cryptocurrency markets.
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