When Crypto Hits the Fan: A Tale of Plunging Prices and Panic!

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Ah, the sweet scent of despair in the morning! Bitcoin and its digital cohorts decided to take a nosedive, much to the dismay of investors and the delight of those who think crypto is a Ponzi scheme. But who are we to judge? 😜

Bitcoin, the OG of digital coins, plummeted to a low of $97,855, a staggering 10% drop from its high earlier this month. And let’s not forget about its “alt” friends, Fartcoin, Raydium, Pepe, and Virtuals Protocol, who each took a 20%+ tumble. Ouch! 💔

These coins are now trading at a fraction of their monthly highs. Fartcoin, the beloved meme coin on the Solana network, has dropped by a whopping 63% from its peak. Raydium, the largest decentralized exchange on Solana, has fallen by 20%, and Pepe has declined by nearly 40%. Yikes! 🚀

What’s causing this digital downfall? Well, there are three main reasons:

  • Investors have become more daring after DeepSeek’s success, which has caused a ripple effect in the stock market. Poor NVIDIA and AMD are feeling the heat, as their high-priced chips might not be in demand anymore. 😲
  • The Federal Reserve is expected to maintain a hawkish tone due to inflation, which tends to make crypto markets shiver in fear. Higher bond yields, anyone? 🦅
  • Earnings reports from major tech companies like Microsoft, Amazon, and Tesla are on the horizon. If they don’t perform well, both the stock and crypto markets might take a hit. 💸

Bitcoin’s Double-Top Chart Pattern: A Recipe for Disaster?

Bitcoin price chart pattern

According to the daily chart, Bitcoin’s price has formed a double-top chart pattern at $108,310, with the neckline at $90,000. Oh, dear! A double-top is one of the most bearish patterns in technical analysis. But hey, at least Bitcoin is still above the 50-day and 100-day moving averages, so there’s that. 📉

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2025-01-27 16:58