The crypto market crash caused a 2.4% drop in total market cap to $3.62T. Prices of Bitcoin and Ether were down 0.2% and 2%, respectively, amid macroeconomic conditions.
Crypto Market Crash: Top Coins Record Major Losses
Today’s crypto market crash coincided with the market cap declining by 2.4% to $3.62 trillion, and strong bullish momentum would be required to prevent further declines. Many analysts have linked the ongoing crypto market crash to the relatively slow policy implementation by the new administration.
Bitcoin (BTC) continues to trade above $100,000, indicating resilience even though it hit an intraday low of $100,277. BTC’s price above the $100K level is a psychological confidence for investors as they await renewed bullish momentum.
Improved broader market conditions could cause BTC to reclaim the $105,000 price and invalidate any bearish outlook. FARTOIN is down 37.9% in the last seven days and traded at $1.04 at the time of writing.
It could reclaim its next crucial resistance level of $1.549 if it maintains its bullishness. This would restore investor confidence and pave the way for further upward movement.
Macroeconomic Indicators and The Crypto Market Crash
Macroeconomic factors also impact the market. The growth of the US services sector has resulted in increased Treasury yields as investors move into safer assets.
Monetary policy changes are also putting pressure on the market. The Federal Reserve’s last meeting suggests a hawkish stance for a long time, which means rate cuts for 2025 will be less than forecasts.
The earliest expected rate cut is in June, with a 44.8% probability. The high level of risks in borrowing has reduced demand for assets like cryptocurrencies.
Bitcoin Steadies as Speculation Unfolds
While market participants await the Federal Open Market Committee (FOMC) meeting on January 29, BTC has traded within a narrow range ($100,000 – $110,000). This indicates that the market is cautiously consolidating following the coin’s rally to six figures earlier in the month.
Analysts expect limited crypto market volatility until the Federal Reserve defines its monetary stance. Hence, interest rates are expected to stay between 4.25% and 4.5%.
Quantitative easing (QE) may boost Bitcoin’s price. Experts’ concerns about quantitative easing have grown as the US debt exceeds $36.1 trillion.
Slow Funds Inflow Follow BTC’s $100,000 Milestone
The current consolidation phase differs from the bullish patterns displayed by the market after BTC broke $100,000. Initial optimism for price recovery was overshadowed by on-chain data indicating a decrease in capital inflow to the crypto market.
In addition, Bitcoin’s realized cap net position decreased from 12.5% late in 2024 to nearly 5%, indicating a lack of trading activity above $100,000. However, the realized profit-taking has dramatically reduced, dropping from a high of $4.5 billion in December 2024 to $316.7 million, a 93% drop.
Analysts explained that this decline can be attributed to a nearly stable balance between supply and demand.
Metaplanet Secures $745M to Expand Bitcoin Holdings
Meanwhile, Metaplanet Inc., a finance firm based in Tokyo, has raised $745 million to advance its BTC holdings, marking a prime example in cryptocurrency adoption in Japan. The company intends to issue twenty-one million shares at market value through zero-discount and generate close to $745 million.
The units will be sold at $2.33 (363 yen), with adjustable exercise prices aligned with market values. The plan will significantly lessen the dilution of shares, which shows the firm’s commitment to protecting equity holders during its Bitcoin acquisition strategy.
Metaplanet’s Bitcoin Acquisition Plan
In addition, Metaplanet seeks to buy 10,000 BTC by the end of 2025 and 21,000 by 2026. At the end of December 2024, the company held 1,761 BTC, with a market value of over ¥27.7 billion.
This development has enabled Metaplanet to become one of the highest-ranked corporate holders of Bitcoin. It gives them a strong chance of succeeding in achieving a Bitcoin renaissance for Japan and globally.
Gerovich Kane, a top-level executive with Metaplanet, lauds the company’s developments, saying the company is ready to grab any available opportunity to expand its status internationally.
