🌎 Crypto Market Sees Significant Decline

Bitcoin and Altcoins Experience Significant Decline as Market Sentiment Shifts

On Monday, the cryptocurrency market witnessed a notable downturn, with Bitcoin and most altcoins plummeting in value. This downward trend has persisted since the beginning of the year, with Bitcoin falling to a low of $97,855, representing a decline of about 10 percent from its high earlier this month.

Altcoins Also Affected

Other major cryptocurrencies, such as Fartcoin, Raydium, Pepe, and Virtuals Protocol, also experienced significant losses, each dropping by over 20%. Many of these coins are currently trading below their monthly highs, with Fartcoin, a popular meme coin on the Solana network, having dropped by 63% from its peak this month.

Reasons Behind the Decline

Several factors are contributing to the market downturn. Firstly, investors have adopted a risk-on sentiment following the success of DeepSeek, a Chinese competitor to Anthropic’s Claude, ChatGPT, and xAI. This shift in sentiment has also led to a decline in major stock market indices, such as the Dow Jones, Nasdaq 100, and S&P 500, which have fallen by over 2%.

Secondly, the market is anticipating the Federal Reserve’s upcoming interest rate decision, with economists expecting a hawkish tone due to elevated inflation levels. A recent report revealed that the headline Consumer Price Index rose from 2.7% in November to 2.9% in December.

Thirdly, the declines are also being driven by anticipation of earnings reports from major technology companies, including Microsoft, Amazon, Meta Platforms, Apple, and Tesla. Weak financial results from these firms could have a negative impact on both the stock and crypto markets.

Bitcoin Price Chart Analysis

The daily chart shows that Bitcoin’s price has formed a double-top chart pattern at $108,310, with the neckline at $90,000. A double-top is widely regarded as one of the most bearish patterns in technical analysis.

However, on the positive side, Bitcoin remains above the 50-day and 100-day moving averages, indicating that the overall bullish trend is still intact. The bearish outlook will persist as long as the price stays below the double-top level of $108,310.

Some key points to consider: