Analysis of the impact of Trump’s speech and the Bank of Japan’s interest rate hike

The cryptocurrency market has taken a huge hit, with… Total market value It has fallen by 3.64% since January 22, 2025. Altcoins saw a decline of 2.72%, and the market capitalization excluding the top ten coins decreased by 5.2%. Over the past 24 hours, major cryptocurrencies fell: Bitcoin and Ethereum fell by 3% each, XRP by 2%, Solana by 2.5%, BNB by 1.9%, Dogecoin by 3.5%, and Cardano by 3.5%.

Let’s explore the main factors behind this market slump.

The main reasons behind the recent cryptocurrency sell-off

There is no talk of cryptocurrencies from Trump

The cryptocurrency community had high expectations for former President Trump’s inaugural speech, hoping he would unveil plans for Bitcoin reserve. Instead, Trump avoided any mention of cryptocurrencies, leaving enthusiasts disappointed.

On a brighter note, the US Securities and Exchange Commission (SEC) announced… Cryptography Task Force. The move aims to create a clearer regulatory framework for the industry, providing a small but important step forward.

The impact of the Bank of Japan’s interest rate hike

The Bank of Japan may raise interest rates by 25 basis points to 0.5%, a big jump from the current 0.25%. This would represent the highest rate in nearly two decades. Japan started 2024 with interest rates at -0.1%, increased them to 0.1% in March, and to 0.25% in July. If the expected increase is achieved, it may have implications for the global market.

US Federal Reserve meeting

The US Federal Reserve is unlikely to cut interest rates at its meeting scheduled for January 29, despite indicating two possible cuts in 2025. Last December, the Fed cut interest rates by 25 basis points to The range is 4.25% to 4.5%. However, with the US economy showing signs of weakness, additional cuts this year appear to be off the table.

US dollar index and Treasury yields

The US Dollar Index has risen by 4.16% since November 5, rising from 103.901 to 108.227.

Likewise, the 10-year Treasury yield reached 4.6357% on January 6, the highest level since April 2024. Although they faced some pressure earlier in January, yields have been trending higher since mid-month, adding to the pressure Markets.

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BTC and ETH options expiration

Upcoming options expirations increase market instability. A total of 29,000 Bitcoin options (worth $3 billion) and 169,000 Ethereum options (worth $0.5 billion) are set to expire soon, putting additional pressure on prices.

Hard time for cryptocurrencies?

The recent crypto sell-off reflects a combination of macroeconomic challenges, political frustrations, and market-specific pressures such as options expiration. As Bitcoin, Ethereum, and other cryptocurrencies struggle amid these uncertainties, investors should closely monitor regulatory updates, interest rate decisions, and market trends.

Stability may not return unless overall conditions improve or institutional confidence is renewed.