This is why Bitcoin and most altcoins are declining

Bitcoin and most altcoins fell this week even after Donald Trump was inaugurated as the most crypto-friendly president in the United States.

Bitcoin (Bitcoin) The price fell to $101,000 on January 23, while popular meme coins like ai16z, Fartcoin, and Official Trump fell by more than 20%. The other most lagging coins were Lido DAO, Jupiter, Virtuals Protocol, and Hyperliquid.

There are four possible reasons for the ongoing decline in the cryptocurrency space. First, economists expected The Bank of Japan will raise interest rates by 0.25% on Friday. This would raise the official interest rate to 0.50%, the highest level since 2008.

The last interest rate hike from the Bank of Japan occurred in August last year, which led to a sharp decline in cryptocurrencies and other assets. This was because JPY holds commerce. As such, another interest rate hike by the Bank of Japan could lead to another decline, albeit of a smaller magnitude.

Secondly, in line with this, Bitcoin and altcoins declined as traders awaited the Fed’s interest rate decision next week. The hawkish tone may also lead to further weakness in the cryptocurrency industry as it will push government bond yields higher.

Third, it has decreased because Donald Trump has not mentioned cryptocurrencies since his inauguration. He also did not sign any executive order regarding cryptocurrency. This explains why the odds of creating a strategic reserve of Bitcoin have dropped to 40%. Polymarket.

Currencies also fell due to the common practice of buying an asset before a major event and then selling it when it occurs.

The dangers of a double top in the Bitcoin price

Bitcoin also formed a risky double top chart pattern at $108,100. This pattern consists of two peaks and a neckline and is usually a bearish reversal sign. The neckline in this case is $89,305. By measuring the distance between the double top and the neckline, the potential target for the coin is around $74,000.

Therefore, Bitcoin will remain on the edge as long as it is below the double top pattern. This, in turn, will affect other altcoins that often move in the same direction as Bitcoin.

A move above the double top at $108,100 will negate the bearish view and point to further gains, possibly to the psychological level at $110,000.