On Monday, BTC and most AltCoins continued the downward trend, which has been present since Donald Trump took office.

The primary cause of the crash was that investors embraced risk sentiment after the success of DeepSeek. This also explains why major stock market indices such as the Dow Jones, Nasdaq 100, and S&P 500 fell by more than 2%.
DeepSeek is a Chinese competitor to Anthropic's Claude, ChatGPT, and xAI. It was developed in less than four months at a fraction of the cost. Its success has raised concerns about the future demand for high-priced chips from companies like NVIDIA and AMD, as well as broader market valuations.
🥈Secondly, the prices of BTC and alts are falling because the market anticipates the interest rate decision to be made by the Federal Reserve. Economists expect the Fed to maintain a hawkish stance due to the rising inflation levels. A report earlier this month showed that the overall Consumer Price Index rose from 2.7% in November to 2.9% in December.
BTC and other cryptocurrencies typically have a negative reaction to the hawkish stance of the Federal Reserve, as it often leads to higher bond yields.
Thirdly, the downtrend has also been driven by market expectations for the financial reports of major technology companies such as Microsoft, Amazon, Meta Platforms, Apple and Donald Trump. The weak financials of these companies may have a negative impact on the stock and crypto markets.
👍🏻Technical analysis: BTC price chart pattern points to more downward trend
The daily chart shows that the price of BTC formed a double top pattern at $108,310, with a neckline at $90,000. The double top is widely regarded as one of the most bearish patterns in technical analysis.
From a positive perspective, Bitcoin is still above the 50-day moving average and the 100-day moving average, indicating that the overall bullish trend is still intact. However, as long as the price remains below the double top at $108,310, the bearish expectations will persist.
#TopContentChallenge