As Donald Trump's inauguration day approaches, Bitcoin and altcoins were expected to rise further, but the situation did not turn out as expected.
BTC and altcoins have seen sharp declines amid growing macroeconomic concerns. Bitcoin has fallen from over $102,000 to around $96,000, while Dogecoin (DOGE) led the top 10 cryptocurrencies in losses over the past 24 hours.
Solana (SOL) fell 9.4%; Ethereum (ETH) fell 8.5%; XRP fell 5.7%, while DOGE fell 11.9%.
Bitcoin's Drop Is Temporary!
Analysts noted that the recent downward trend in Bitcoin and cryptocurrencies is due to the decline in the US market and the strengthening of the US dollar.
At this point, zkLink CEO Vince Yang stated that the decline is temporary and the bull will continue.
“Markets were hit yesterday with Bitcoin and Ethereum falling sharply, mainly because of stronger-than-expected US jobs data that dampened hopes for further rate cuts this year.
These types of declines have been seen before, so this is nothing unusual for crypto.
However, we are still bullish on the upside. History shows that these declines usually pave the way for larger upward movements.
“Particularly where we are in the market cycle right now and the arrival of a more crypto-friendly administration in the US are just a few signs that the bull run is here to stay.”
January Could Be a Shaky Month for Bitcoin and Altcoins!
Apart from Yang, QCP Capital analysts said that January will be a shaky period for Bitcoin and cryptocurrency markets, noting that declines may continue.
“January will not be easy, as structural risks loom. The reinstatement of the U.S. Treasury debt ceiling is set to re-impose in mid-month, requiring the Treasury to take “extraordinary measures” to finance government spending. This could lead to volatility in the cryptocurrency market as debate around the issue intensifies,” QCP analysts wrote.
*This is not investment advice.