Why Your First Million Is the Toughest

Economic

Summary:

Discover why earning your first million is the hardest milestone to achieve. Learn about the psychological, financial, and practical hurdles—and how to overcome them to build lasting wealth.

Earning your first million dollars is often seen as the ultimate financial milestone. It’s a symbol of success, freedom, and security. However, for most people, this goal feels like climbing a mountain—daunting, exhausting, and seemingly impossible at times. The truth is, your first million is the hardest to achieve. But why is that? And what can you do to overcome the challenges and reach this life-changing goal? Let’s dive in.

The Psychological Barrier

One of the biggest hurdles to earning your first million is the mental block that comes with it. For many, the idea of accumulating such a large sum feels unrealistic or even unattainable. This mindset can hold you back in several ways:

Self-Doubt: You might question whether you have the skills, resources, or opportunities to succeed.

Fear of Failure: The fear of losing money or making mistakes can paralyze you into inaction.

Lack of Vision: Without a clear plan or belief in your ability to achieve the goal, it’s easy to lose motivation.

How to Overcome It

Shift Your Mindset: Start by believing that earning a million dollars is possible. Surround yourself with success stories and mentors who inspire you.

Set Smaller Goals: Break down the million-dollar goal into smaller, achievable milestones. Celebrate each win to build confidence.

The Financial Barrier

When you’re starting from zero, building wealth requires more than just saving money—it requires strategic investing, smart spending, and consistent effort. Here’s why the financial barrier is so challenging:

Limited Resources: Most people start with little to no capital, making it harder to invest or start a business.

Debt and Expenses: Student loans, mortgages, and daily living expenses can eat into your ability to save and invest.

Lack of Knowledge: Without a solid understanding of investing, taxes, or wealth-building strategies, it’s easy to make costly mistakes.

How to Overcome It

Live Below Your Means: Cut unnecessary expenses and focus on saving a significant portion of your income.

Invest Early and Consistently: Take advantage of compound interest by investing in stocks, real estate, or other assets.

Educate Yourself: Learn about personal finance, investing, and entrepreneurship through books, courses, and mentors.

The Practical Barrier

Earning your first million isn’t just about money—it’s about time, effort, and persistence. Here are some practical challenges you might face:

Time-Consuming: Building wealth takes years, if not decades. It requires patience and long-term thinking.

Risk and Uncertainty: Whether you’re starting a business or investing in the stock market, there’s always a risk of failure.

Competition: In today’s competitive world, standing out and achieving financial success requires innovation and hard work.

How to Overcome It

Stay Consistent: Focus on steady progress rather than quick wins. Consistency is key to long-term success.

Diversify Your Income: Don’t rely on a single source of income. Explore side hustles, passive income streams, or entrepreneurial ventures.

Learn from Failure: Treat setbacks as learning opportunities. Every failure brings you closer to success if you’re willing to adapt and grow.

Why the First Million Is a Game-Changer

Once you’ve earned your first million, the journey to your second, third, or even tenth million becomes significantly easier. Here’s why:

Compound Interest: Your investments start generating substantial returns, accelerating your wealth growth.

Leverage: With more capital, you can take advantage of bigger opportunities, such as real estate or business acquisitions.

Confidence and Momentum: Achieving your first million boosts your confidence and motivates you to aim higher.

Strategies to Reach Your First Million

Start a Business: Entrepreneurship is one of the fastest ways to build wealth. Identify a problem, create a solution, and scale your business.

Invest Wisely: Focus on long-term investments like index funds, real estate, or dividend-paying stocks.

Increase Your Income: Negotiate a raise, switch to a higher-paying job, or develop a high-income skill.

Network and Collaborate: Surround yourself with like-minded individuals who can support and inspire you.

Stay Disciplined: Avoid lifestyle inflation and stay committed to your financial goals.

Conclusion

Earning your first million is undoubtedly the toughest financial milestone to achieve. It requires overcoming psychological barriers, navigating financial challenges, and putting in consistent effort over time. However, with the right mindset, strategies, and persistence, it’s entirely within your reach. Remember, the journey to your first million is not just about the money—it’s about the growth, resilience, and discipline you develop along the way.

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Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

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Glendon

Economic

The Chinese Yuan (CNY), also known as the Renminbi (RMB), is one of the most traded currencies in the world. Whether you’re planning a trip to China, investing in the Chinese market, or simply diversifying your currency portfolio, buying Chinese Yuan can be a smart move. However, if you’re new to currency exchange, the process might seem overwhelming. Don’t worry—this guide will walk you through everything you need to know to buy Chinese Yuan easily and confidently.

Why Buy Chinese Yuan?

Before diving into the "how," let’s explore the "why." Here are a few reasons why you might want to buy Chinese Yuan:

Travel to China: If you’re visiting China, having Yuan on hand is essential for daily expenses like food, transportation, and shopping.

Investment Opportunities: The Yuan is increasingly used in global trade, making it a potential investment opportunity.

Diversification: Holding multiple currencies can protect you from fluctuations in your home currency.

Business Transactions: If you’re doing business with Chinese companies, you may need Yuan for payments.

Step 1: Understand the Basics

Before buying Yuan, it’s important to understand a few key terms:

CNY vs. RMB: CNY is the currency code for the Yuan, while RMB (Renminbi) is the official name of China’s currency. Think of RMB as the "dollar" and CNY as the "USD."

Exchange Rate: This is the rate at which one currency can be exchanged for another. Exchange rates fluctuate based on market conditions.

Fees and Commissions: Be aware of any fees charged by banks, exchange services, or platforms when converting currency.

Step 2: Choose Your Method

There are several ways to buy Chinese Yuan, each with its own pros and cons. Here are the most common methods:

1. Banks

Pros: Secure and reliable.

Cons: Often have higher fees and less competitive exchange rates.

How to Do It: Visit your local bank or use their online platform to order Yuan. You can receive cash or have it deposited into your account.

2. Currency Exchange Services

Pros: Convenient and often offer better rates than banks.

Cons: Fees can vary, and rates may not always be transparent.

How to Do It: Use services like Travelex or CurrencyFair to exchange currency online or in person.

3. Online Platforms

Pros: Competitive rates, low fees, and convenience.

Cons: Requires trust in the platform’s security.

How to Do It: Platforms like Wise (formerly TransferWise) or Revolut allow you to buy and hold Yuan digitally.

4. ATMs in China

Pros: Convenient if you’re already in China.

Cons: ATM fees and unfavorable exchange rates.

How to Do It: Use your debit or credit card to withdraw Yuan directly from ATMs in China.

Step 3: Compare Exchange Rates

Exchange rates can vary significantly between providers, so it’s important to compare rates before making a transaction. Use online tools like XE.com or OANDA to check real-time rates and ensure you’re getting the best deal.

Step 4: Watch Out for Fees

Hidden fees can eat into your currency exchange. Here’s what to look out for:

Transaction Fees: Flat fees charged per transaction.

Service Fees: Percentage-based fees on the amount exchanged.

ATM Fees: Fees for withdrawing Yuan from ATMs abroad.

Always read the fine print and choose a provider with transparent pricing.

Step 5: Consider Timing

Currency exchange rates fluctuate constantly due to market conditions. While it’s impossible to predict the best time to buy Yuan, you can monitor trends and exchange rates over time to make an informed decision.

Step 6: Store Your Yuan Securely

Once you’ve bought Yuan, decide how you want to store it:

Cash: Ideal for travel, but risky to carry large amounts.

Digital Wallets: Use platforms like Wise or PayPal to hold Yuan digitally.

Bank Accounts: Open a multi-currency account to store and manage Yuan.

Tips for Buying Chinese Yuan

Start Small: If you’re new to currency exchange, start with a small amount to familiarize yourself with the process.

Use Reputable Providers: Stick to well-known banks, exchange services, or platforms to avoid scams.

Plan Ahead: If you’re traveling, buy Yuan in advance to avoid last-minute stress.

Monitor the Market: Keep an eye on economic news and trends that could impact the Yuan’s value.

Conclusion

Buying Chinese Yuan doesn’t have to be complicated. By understanding the basics, choosing the right method, and comparing rates and fees, you can easily acquire Yuan for travel, investment, or business purposes. Whether you prefer the convenience of online platforms or the security of banks, there’s a solution that fits your needs.

Start your journey today, and take the first step toward mastering the art of currency exchange. With this guide, buying Chinese Yuan is now easier than ever!

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Justin

Economic

Some 22 years after losing a power struggle against Angela Merkel, Friedrich Merz will finally be chancellor. But can he save Germany? Chances are that he can. The vast majority of Germans knows that things cannot go on as they have for the last seven years. Although he won a far from convincing 28.5% of the vote on 23 February, that gives Merz a chance to explain the need for serious change.

He will face an uphill struggle to enlist his partners-to-be from the centre-left Social Democratic Party (SPD) for major reforms, especially as the heavily battered party of outgoing Chancellor Olaf Scholz may yearn for a period of soul-searching and a return to its roots first. But the almost unprecedented upheaval caused by US President Donald Trump could help him in his mission.

If Merz plays his hand well, he can do it. And he better succeed. This may be Germany’s last chance to prevent the pro-Russian and anti-European Union extremists from taking over. The parties of the extreme Right (Alternative for Germany (AfD)) and the Left (Die Linke and BSW) increased their share of the popular vote to 34.6% from 15.3% in 2021. If the German mainstream parties of the centre-Right and the centre-Left do not get their act together now, the extremists may win power next time.

Immigration, Russia and the economy

Merz seems to have a clear idea of the three big things that need to be done.

First, Germany must regain control over who lives in the country. Uninvited migrants should be turned back at the German (or EU) border or be shown the door unless they genuinely qualify for asylum. That is the only way to rebuild popular support for inviting and attracting the qualified immigrants the country needs to cope with its worsening lack of labour. Uncontrolled immigration is one of the top issues that right-wingers from Trump to Nigel Farage, leader of the UK Reform party, and Alice Weidel, AfD co-leader, regularly exploit to win popular support for their backward-looking agendas.

Second, as the pivotal power in the middle of Europe, Germany must lead or at least co-lead the European response to Russia’s brutal aggression against Ukraine and to the apparent affection between Russian President Vladimir Putin and Trump. That requires a major and lasting increase in German defence spending and a readiness to finally send Ukraine the weapons it needs to survive.

Third, after three years of stagnation, the German economy is at risk of returning to the dismal state of the late 1990s and early 2000s for which I coined the term ‘sick man of Europe’ in 1998, some months before it made it onto the cover of The Economist. Germany now needs reforms as thorough as those of the erstwhile ‘Agenda 2010’ that laid the basis for what I dubbed ‘Germany’s golden decade’ of 2010-19.

Merz can be a leader. In a spectacular turnaround from the hardline position on fiscal prudence on which he had campaigned, he is now exploring the idea of topping up the German special fund for the military by €200bn. This requires a change to the debt-brake provision in the constitution.

As the pro-Ukraine mainstream parties will no longer have the needed two-thirds majority to do so in the new parliament, he has proposed to convene the old parliament for that purpose before the new assembly takes over on 25 March. In the old parliament, the mainstream parties still have the votes for it. If he can get SPD and the Greens to support him, this would send a strong message to Trump and Putin that Germany is rising to the challenge of paying for its own defence – and that it will stand by Ukraine.

Courage for a grand compromise

Coalition talks with the SPD will not be easy for Merz. Apart from vague promises of cutting red tape, the platforms of the Christian Democratic Union/Christian Social Union and SPD have little in common when it comes to precise measures to revive the flagging economy. A lot will depend on his negotiating skills.

If Merz plays his hand well, he could manage to gradually cut business taxes from almost 30% to 25%, ease regulatory burdens, including reporting requirements, and streamline some planning and approval procedures. He could also pursue a more rational immigration policy (more pushbacks of uninvited immigrants coupled with faster procedures for the qualified immigrants Germany needs) and adjust energy policy with a focus on building out the grid and storage facilities (but without granting any permits for nuclear reactors).

But in order to get the SPD to support such key elements of a pro-growth reform agenda, he will also have to make major concessions to the centre-Left. Most importantly, he should offer the SPD support for a more far-reaching overhaul of Germany’s excessively tight fiscal straitjacket (the debt brake). In addition, he could accept a headline SPD demand to raise the minimum wage in stages from €12.82 per hour to €15. That would hurt some smaller businesses. However, the companies that count for Germany’s international competitiveness such as the ‘hidden champions’ of the Mittelstand would not be affected much. They pay well above minimum wage anyway.

If Merz forges a ‘grand compromise’ in which both the CDU/CSU and SPD ditch some of their cherished but outmoded positions in return for a few key policy changes in areas that really matter for them, Merz could indeed put Germany on the right track again. Good luck, Friedrich. The world needs a stronger and self-confident Germany.

Source:Holger Schmieding

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Justin

Economic

The global banking system has faced mounting disruptions in recent years, from the 2008 financial crisis to the Covid-19 pandemic. Now, another force is threatening to reshape the financial landscape: the rise of reciprocal tariffs and protectionist trade policies.

The idea of reciprocal tariffs appears straightforward: if a country imposes tariffs on US goods, the US will respond in kind. While framed to correct trade imbalances and protect domestic industries, its effects extend far beyond manufacturers, exporters and importers. It also threatens to reshape global banking, distort financial flows and force banks to rethink risk models to maintain prudential resilience.

Trade finance, valued by some at $9.7tn in 2024, represents a critical yet often invisible infrastructure that funds over 80% of global trade transactions. (Estimates vary based on different definitions and methodologies used.) Traditionally, this was considered a low-risk sector with default rates below 0.5%. Banks play a pivotal role in this ecosystem. They underwrite transactions through instruments like letters of credit, supply chain financing and export credit guarantees. Banks and financial institutions must now reckon with a new, uncertain trade finance landscape.

As trade policies become increasingly protectionist, banks confront three new realities in which global trade finance faces heightened risks. One of the primary concerns is the potential for tariffs to disrupt supply chains, compelling banks to reassess corporate creditworthiness and trade finance exposure. Second is the macroeconomic impact of tariffs, which tend to raise consumer prices without necessarily boosting economic activity. Finally, while some see opportunities in this shifting environment, there is a growing recognition that trade finance must adapt to an era of economic fragmentation.

The need for diversification, alternative payment mechanisms and resilient financing structures is becoming more urgent. These three developments point to a future in which banks that finance global trade must recalibrate their risk models and trade finance strategies.

History suggests that when global trade undergoes structural shifts, trade finance adapts. Two significant transformations in trade finance have occurred in the past century, both driven by seismic shifts in international trade patterns. The post-second world war era saw the emergence of structured global trade finance.

Institutions like export credit agencies helped finance trade for post-war economies. This era saw the formalisation of letters of credit, providing a standardised framework for banks. The globalisation and digitalisation era introduced Swift messaging for trade transactions, Basel-driven prudential norms and digitalised trade finance platforms. Banks began integrating trade finance into capital markets, leading to innovations like trade receivables securitisation and blockchain-based settlement systems.

With reciprocal tariffs, supply chain realignments and the emergence of alternative trade finance models, we could enter a third major transformation in trade finance – one not driven by financial innovation but by geopolitical realignments and statecraft.

There is also a risk of unintentional consequences. Though designed to shield US industries, reciprocal tariffs may adversely affect American banks. For example, during the 2018–19 US-China trade war, China slashed US soybean imports by 75%, triggering loan defaults and bankruptcies among American farmers. Regional banks, particularly in the Midwest, saw increased non-performing loans tied to agricultural lending. Another looming concern is inflationary pressure and interest rate hikes. Tariffs increase the cost of imports, leading to inflation and potential US Federal Reserve rate hikes. Higher interest rates could raise business borrowing costs, increasing default risks across multiple industries, including manufacturing, real estate and retail.

This could have regional and global implications. As traditional trade regimes get disrupted, new trade finance centres may emerge. Financial hubs like Hong Kong and Singapore must adapt to intra-Asian trade, just as European banks, including Deutsche Bank and HSBC, are shifting towards intra-European and emerging-market trade finance. At the same time, alternative trade finance systems are growing. China, Russia, India and the United Arab Emirates are increasing local currency trade settlements, bypassing the dollar. If this trend accelerates, it could erode the dominance of US banks in global trade finance.

There is little doubt that reciprocal tariffs, once seen as a temporary trade correction tool, will reshape global banking and trade finance if implemented. Large banks traditionally involved in international trade might have business and strategic ingenuity, apart from having a closer axis to governments and policy-makers. The middle segment of the banking industry might be unable to adapt to this shifting landscape and risk collateral damage in the broader battle over trade and financial dominance.

The world must act swiftly to mitigate risks to the existing trade finance order, strengthen trade finance mechanisms and ensure financial stability – or face a future in which trade finance becomes another battleground in the geopolitical struggle for economic influence.

Source:Udaibir Das

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ING

Economic

The just-released flash estimate of German inflation for February brought some small relief for the ECB, showing headline inflation unchanged at 2.3% year-on-year. Core inflation came down to 2.6% YoY from 2.9% YoY. The European inflation measure came in unchanged at 2.8% YoY.

Earlier today, retail sales and labour market data indicated that expectations for a consumption-driven economic recovery are likely to be dashed once again. While the meagre increase in retail sales by 0.2% month-on-month in January was too little to offset the weak final quarter of 2024, the very gradual turning of the labour market continued in February.

Headline inflation to remain between 2% and 2.5% this year

The available regional state data suggests that favourable energy base effects as well as falling prices for alcohol, healthcare and household goods put downward pressure on inflation, while food prices accelerated again. Services inflation also continued its very gradual easing trend.

Looking ahead, one important driver of headline inflation will still be energy prices, which have gone on a rollercoaster ride in recent months. A ride that could easily continue, depending on whether geopolitical tensions soften or escalate. Regarding underlying inflation, however, there will be two opposing trends determining the future path of inflation. On the one hand, the cooling of the labour market should take away wage pressures and consequently also inflationary pressure, while on the other hand, the delayed pass-through of higher services costs is still in full swing. At the same time, the recent increase in selling-price expectations in industry is also concerning and could be aggravated by upcoming European tariffs.

As a result of these opposing trends, we see German headline inflation settling down in the range of 2% to 2.5% throughout the year, or to paraphrase the ECB: “close to but above 2%”.

Today's inflation data from eurozone countries paves the way for an ECB rate cut next week

For the ECB, today’s inflation data, not only from Germany but also from France and Italy, will have cemented the case for another 25 basis point rate cut next week. The main question, however, will be what’s next for the ECB. At 2.5%, the policy rate would be at the upper end of the neutral interest rate range. More hawkish ECB officials, like Isabel Schnabel, have started to push back against additional rate cuts. The critical communication to watch next week is whether the ECB drops the “restrictive” label from its official stance. Given the currently unprecedented high level of uncertainty, a complete drop of the “restrictive” label might be too hawkish. Some modification, e.g. towards “less restrictive” or “hardly restrictive anymore” might be better options to signal a possible end to the current autopilot.

In any case, given the structural weakness of the eurozone economy as well as looming tariffs and lower inflationary pressure on the back of a turn in the labour market, we still think that eventually the ECB will have to bring rates down to at least 2%, to make sure that rates are no longer restrictive but possible even accomodative.

Source:ING

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Warren Takunda

Cryptocurrency

Bitcoin is in danger of violating its old all-time highs from March 2024 as BTC price losses erase the entire “Trump pump.”

Where could BTC/USD finally bottom? Cointelegraph takes a look at the most popular targets for crypto traders and analysts.

BTC price fills key CME futures gap

A key area on the radar for traders is the “gap” in CME Group’s Bitcoin futures markets that price created during its ascent to $100,000 and beyond.

This lies at $78,000, and as of Feb. 28, BTC/USD has almost entirely “filled” the void.

“Bitcoin is getting closer and closer to filling its CME Gap formed back in November 2024. The CME Gap is located between $78,000 and ~$80,700,” popular trader and analyst Rekt Capital confirmed in a post on X the day prior.

Rekt Capital additionally noted a CME gap to the upside at around $92,000, potentially offering a target should a relief bounce ensue. When Will Bitcoin Price Bottom?_1

CME Group Bitcoin futures 1-day chart. Source: Rekt Capital/X

As Cointelegraph reported, CME gaps often function as short-term BTC price magnets, getting filled within days or even hours of their creation. Even those gaps that remain open for longer tend to be revisited at a later date once Bitcoin’s macro trend changes.

Bitcoin OG reiterates long-term $76,000 target

Throughout the trip to current record highs near $110,000, one longtime crypto market participant remained conservative on the near-term outlook.

For BitQuant, the pseudonymous X user who succeeded in calling various key BTC price highs and lows, a major correction has long been on the cards.

In December, he warned that a return to the bottom of Bitcoin’s old trading range at $90,000 would not mark reliable support.

“Sorry, but no, $90K was not the dip,” he wrote at the time.

Now, BitQuant is referencing his long-term expectations of a trip to the mid-$70,000 zone before “up only” BTC price action resumes.

“Are you panicking again? Panic buying or panic selling?” he asked X followers on Feb. 28. When Will Bitcoin Price Bottom?_2

BTC/USD 1-day chart. Source: BitQuant/X

Bitcoin bids laddered down to $70,000

When it comes to betting on exchange order book buyer interest to time market bottoms, traders play a risky game.

As Cointelegraph noted, such liquidity can often be a product of manipulation by large-volume market participants, being added and removed instantly to influence price trajectory.

Currently, liquidity is thickening throughout the $70,000-$80,000 corridor.

“$BTC ~$1.8 Billion in Bids has appeared on the Binance futures pair. These bids are sitting between $70K-$79K,” popular trader Daan Crypto Trades reported.

“What happens when bids like these appear is varied. Sometimes price never moves into them, when it does start hitting them, it often fills a lot of them before (shortly) reversing. Keep in mind, these are bids that can just as easily be pulled away. Highlighting this as it's an insane amount and this is something you rarely ever see.” When Will Bitcoin Price Bottom?_3

Bitcoin futures order book liquidity data (Binance). Source: Daan Crypto Trades/X

The latest data from monitoring resource CoinGlass meanwhile puts five-day crypto long liquidations at over $3 billion, showing the risks of what Keith Alan, co-founder of trading suite Material Indicators, calls “catching a falling knife.”

“This is the Bitcoin correction we've been waiting for,” he told X followers on the day alongside the daily BTC/USD chart.

“I'm looking for a wick to the trend line. More importantly I'm looking for buyers to come in...as long as they don't front run me.” When Will Bitcoin Price Bottom?_4

BTC/USD 1-day chart. Source: Keith Alan/X

Source: Cointelegraph

Risk Warnings and Disclaimers

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Warren Takunda

Cryptocurrency

Cryptocurrency prices are down sharply in recent weeks and not expected to rebound soon, with some of the biggest digital currencies erasing nearly all of the gains they made after Donald Trump's election win triggered a wave of excitement across the industry.

Some analysts said the market is likely to remain subdued while waiting for a bullish signal, such as indications that the U.S. Federal Reserve plans to cut interest rates or a clear pro-crypto regulatory framework from the Trump administration.

Bitcoin , the biggest cryptocurrency, has fallen 21% from a January 20 peak and is back to levels seen shortly after Trump's U.S. presidential election victory in November, as hopes for a strategic bitcoin reserve fade and tariff threats weigh on demand for speculative assets.

Other cryptocurrencies have fallen faster, with ether down more than 40% since December.

Trump's own so-called meme coin, which he launched days before his inauguration in a move that sparked conflict-of-interest concerns, is down 80% from a January peak, according to CoinMarketCap data.

The U.S. president promised a wave of pro-crypto moves during his campaign, vowing to be a "crypto president." He pledged to set up a national bitcoin stockpile while overhauling crypto regulations, and named crypto proponents Howard Lutnick and David Sacks to prominent posts within his administration.

Under Trump, the Securities and Exchange Commission has withdrawn investigations into several crypto companies and dropped a lawsuit against Coinbase (COIN.O), opens new tab, the largest crypto exchange in the U.S. But those moves have had little impact on crypto prices and some industry analysts say expectations about Trump may have been too lofty.

It says it's requiring more oversight in its second phase than expected.

In an executive order during his first week in office, Trump ordered the creation of a cryptocurrency working group tasked with proposing new digital asset regulations and looking into creating a national crypto stockpile, to the dismay of some investors who had hoped he would instruct the U.S. to start buying bitcoin.

"The market is disappointed with that," said James Butterfill, head of research at asset manager CoinShares.

Crypto prices are also facing headwinds from more hawkish monetary policy and Trump's threat of tariffs, he added.

"That's increasing all this market uncertainty, which is absolutely not helping bitcoin at all. Until we get (clarity on a bitcoin reserve), I can't see prices recovering significantly," said Butterfill.

Since a December peak, almost $1 trillion has been wiped in nominal value from the global crypto market, with total market capitalisation now around $2.76 trillion, according to CoinMarketCap.

Some investors have had to reset expectations, with preliminary reports from Trump's new crypto working group not due for at least another month.

"The initial excitement surrounding the Trump administration’s perceived pro-crypto stance appears to be in a phase of recalibration," said Gabe Selby, Head of Research at CF Benchmarks, a digital asset index provider.

"For sentiment to shift more decisively, a clearer regulatory framework or a major catalyst - such as additional ETF (exchange traded fund) approvals or policy shifts - seems to be necessary."

The SEC approved the first ETFs tied to the spot price of bitcoin last year, which catapulted the cryptocurrency to a new record high.

Still, some market watchers are as bullish as ever.

Standard Chartered analyst Geoff Kendrick is sticking with a target for bitcoin to hit $500,000, against a record high of $109,071, before Trump leaves office. He said central to that is a belief new buyers will enter the market.

Regulatory filings in the U.S. showed that while hedge funds remain the dominant crypto buyers, banks and sovereign wealth funds are buying too, Kendrick added.

Quarterly filings showed that asset managers boosted allocations to U.S. ETFs tied to the price of spot bitcoin in the fourth quarter of 2024, with Mubadala Investment Co - an Abu Dhabi sovereign wealth fund - reporting a stake in BlackRock's iShares Bitcoin ETF worth $436.9 million.