Bitcoin Weakens: Cardano, XRP, Tron Experience Significant Losses
Bitcoin is currently trading at around $97,000, struggling to maintain heights above $100,000, while other major altcoins like XRP, Cardano, and Tron are experiencing significant losses. This comes after a period of price increases driven by Bitcoin’s surge, with altcoins following suit. The future market outlook depends on Bitcoin reaching new highs and potential impacts from US inflation data.
Just a week ago, the crypto markets were looking up, with Bitcoin leading the way and major altcoins also seeing price gains. Tron, for example, hit a new all-time high just seven days ago, only to drop by around 37 percent since then. XRP, Solana, and Cardano have also halted their upward momentum, facing losses of more than 10 percent. Are there specific reasons for these declines, or is it a broader trend across the entire crypto market?
Analysts, like Edul Patel from the crypto exchange Mudrex, suggest that these movements resemble typical wave patterns. When Bitcoin rises, it usually boosts market sentiment and pushes altcoins higher as well. However, once Bitcoin broke the psychological resistance at $100,000, profit-taking began, leading to a ripple effect on altcoins. But Patel advises against panicking, seeing this as a temporary consolidation phase before new highs.
The recent gains in major altcoins were influenced by unique factors that are unlikely to be repeated. Tron benefited from bold PR campaigns led by founder Justin Sun, while Cardano garnered attention through its constitutional convention. Ripple’s XRP appears to have promising interactions with future US President Donald Trump through CEO Brad Garlinghouse, overcoming legal challenges.
As Bitcoin hovers around $97,000, data on BTC ETFs show daily capital inflows of about $400 million, providing a strong foundation for a potential return above $100,000. For altcoins like XRP and Solana, hopes of being listed on an ETF were paused by the SEC, pending the inauguration of Donald Trump on January 20th.
In conclusion, altcoins such as XRP, ADA, TRX, and others are closely tied to Bitcoin’s movements. The upcoming US inflation data release could further impact the crypto markets, with higher inflation potentially prompting the Federal Reserve to lower interest rates, a condition that has historically benefited Bitcoin. For the more volatile altcoins, the next upward wave may be dependent on Bitcoin’s direction.
