JPMorgan: Rising macroeconomic risks cause cryptocurrency market decline

Analysts at JPMorgan Chase noted today that the cryptocurrency ecosystem has retreated significantly from its post-2024 U.S. election highs amid heightened concerns about the broader macro environment and risk assets.

The bank reported that the total market value of cryptocurrencies fell to about $2.74 trillion at the end of February, the lowest level since the election in early November 2024.

In this market decline, mainstream tokens fell by more than 20%, and some assets fell more, with prices retreating and showing a negative growth trend so far in 2025.

Despite the downward trend in asset prices, trading volumes remained resilient, with some tokens and exchanges still seeing month-on-month volume growth.

JPMorgan noted that while the regulatory and administrative environment is evolving to create a more favorable operating environment for cryptocurrencies, macroeconomic risks have overshadowed the progress made by the United States in policy clarity in the regulatory, legislative and judicial fields.

The investment bank also observed that gold maintained its position as the preferred "safe" asset, with prices rising by 2% in February, while Bitcoin fell by 18%.

The report also mentioned that the largest-ever cryptocurrency hack occurred in the same month, further exacerbating the instability of the cryptocurrency market.