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The cryptocurrency market has hit a rough patch, with Bitcoin and other major coins losing their recent momentum. After weeks of strong performance, the total market cap has dropped by about 3%, now standing at around $3.54 trillion. This drop comes just after Donald Trump’s presidential inauguration, which many believed would bring good news for the crypto world.
Disappointment from Trump’s Inauguration
Leading up to the inauguration, there was excitement about potential crypto-friendly policies under Trump. However, during his speech, Trump did not mention cryptocurrencies or blockchain technology.
This lack of focus on crypto left investors disappointed, leading to speculations that the inauguration became a “sell the news” event. The hype quickly turned to worries, hurting the optimism that had previously driven prices upward.
Bitcoin ETF Outflows Add to the Downturn
Adding to the market pressure, there has been a significant outflow of Bitcoin ETFs. As of January 22, about $95.62 million worth of Bitcoin ETF outflows were reported, primarily from Grayscale and Bitwise funds, excluding BlackRock’s data.
These outflows align with the market’s weakening trend, further contributing to the overall decline
Liquidations Deepen Market Pressure
The market has also seen significant liquidations, adding to the downward trend. In the past 24 hours, $243 million worth of positions were liquidated, with long traders suffering the most at $192 million. The largest single liquidation, worth $5.93 million, occurred on the OKX exchange.
Bitcoin and Other Cryptos Decline
Bitcoin, the largest cryptocurrency, has struggled to maintain its gains. It dropped by 2.9% to $102,600 after briefly reaching a record high of over $109,000 earlier this week.
Other major cryptocurrencies like Ethereum, XRP, and Solana also fell by 3%-4%, while meme coins such as DOGE, SHIB, TRUMP, and PEPE saw sharper declines of 5%-10%.