Today the global cryptocurrency market is witnessing a major decline, with the market cap reaching $3.55 trillion with a decrease of 2.52%. With this, the 24-hour crypto trading volume has declined by 28.18% to $144.27 billion. The main reason for this decline is the decline in the price of Bitcoin (BTC), which recently turned down from its all-time high. Bitcoin The fall had an impact on the entire market, due to which most Altcoins also suffered losses.
Main reasons for decline
The biggest reason for this decline is the continuous selling pressure in Bitcoin. BTC made its all-time high of $109,114.88 on January 20, 2025, but now its price has reached $102,245.13, representing a decline of 6%. As a result, Bitcoin’s market cap has fallen by $2.02 trillion and its 24-hour trading volume has also declined by 29.34%, which now stands at $56.07 billion. Investors have been affected by this decline and it has dragged down the entire crypto market, including Ethereum (ETH) and other major Altcoins.
Apart from this, another important reason was not making any clear statement about cryptocurrencies in the swearing-in ceremony of US President Donald Trump. When the new administration took office, crypto investors were hopeful that they would find a clearer stance of the US government towards cryptocurrencies. But no effective comments were made on cryptocurrencies during Trump’s inauguration, creating confusion and doubt among investors. This created an environment of uncertainty in the entire crypto market and affected the confidence of investors.
Impact on Altcoins and Memecoins
While Bitcoin and Ethereum The decline was prominent, with other Altcoins such as XRP, Solana and Cardano also suffering losses. The price of The impact of this decline was not limited to only major cryptocurrencies, but memecoins like Dogecoin, Shiba Inu and Pepe also suffered losses. Dogecoin price declined by 6% and was trending at $0.3518, while Shiba Inu and Pepe also saw a decline of 3% and 7% respectively.
Trump’s swearing-in ceremony left investors in a state of confusion as there was no positive signal on cryptocurrencies. Investors are now worried that the new US government may impose strict regulations or taxes on cryptocurrencies, which could be negative for the market.
Conclusion
The current decline in the global crypto market can be attributed to several reasons, including Bitcoin price correction, selling pressure, and uncertainty over the new US government’s crypto policy. Although volatility is normal in the crypto market, the lack of clear guidelines regarding cryptocurrencies from US leaders has become a cause for concern for investors. Until there is more clarity in this area, the crypto market may remain volatile.
