Over the past two days, altcoins and meme coins have experienced sharp declines, mirroring their previous aggressive surges. The primary reason behind this downturn lies in broader market dynamics and macroeconomic concerns.
Earlier this week, Bitcoin and Ethereum rallied on growing market optimism, partly tied to Donald Trump’s upcoming presidential inauguration. Analysts noted a rise in perpetual futures funding rates during this period. However, according to Min Jung, an analyst at Presto Research, broader markets, including stocks, have faltered due to concerns over persistent inflation.
The latest inflation data has negatively impacted traditional markets, with the NASDAQ and S&P 500 both dropping by 1%. This data suggests that the Federal Reserve may maintain its current interest rate of 4.25% to 4.5% at the upcoming FOMC meeting—a scenario that does not bode well for the overall crypto market.
While the crypto market made new all-time highs during Trump’s previous term in the White House, the current
