Crypto Market Today: Analyzing the Impact of Trump’s Speech and BOJ Rate Hike

Key Factors Contributing to the Recent Crypto Market Decline

Since January 22, 2025, the cryptocurrency market has witnessed a significant decline:

• Total market cap: -3.64%
• Altcoin market cap: -2.72%
• Market cap excluding top 10 cryptos: -5.2%

In the last 24 hours, major cryptocurrencies have also experienced losses:

• Bitcoin (BTC): -3%
• Ethereum (ETH): -3%
• Ripple (XRP): -2%
• Solana (SOL): -2.5%
• Binance Coin (BNB): -1.9%
• Dogecoin (DOGE): -3.5%
• Cardano (ADA): -3.5%

Reasons for the Downturn:

• Disappointment from Trump's Speech:

  • Investors anticipated a mention of a Bitcoin reserve plan during Trump's inaugural address, but it was omitted. This disappointment has contributed to the decline.

• Bank of Japan Rate Hike Speculation:

  • Rumors suggest a potential interest rate increase of 25 basis points to 0.5% tomorrow, which could impact the crypto market.

• US Federal Reserve Meeting:

  • The Federal Reserve is expected to maintain interest rates at the upcoming January 29 meeting.
  • Despite previous indications of rate cuts, current economic conditions suggest this is unlikely.

• Rising US Dollar Index and Treasury Yields:

  • The US dollar index has climbed by approximately 4.16% since November, while 10-year Treasury bond yields have reached their highest levels since April 2024.
  • These developments typically lead to a decrease in crypto prices.

• BTC and ETH Options Expiry:

  • A significant number of BTC and ETH options are set to expire soon, potentially contributing to increased volatility and price fluctuations.

Conclusion:

The cryptocurrency market's recent selloff reflects a combination of macroeconomic factors, political developments, and technical influences. Investors should monitor regulatory updates, rate changes, and market trends to make informed decisions while navigating global uncertainties and the market's ongoing recovery.