Crypto Market Update: Bitcoin down, Altcoins bleeding

The crypto market is having a mediocre start to the new week. Bitcoin is falling and remains just below US$92,000. Unlike Bitcoin, Altcoins continue to drop further. Ethereum has seen a decline of 5.64 percent over the last 24 hours, and Solana 5.95 percent.

Cardano and Sui, which have been performing well recently, also lost significantly. Both ADA and SUI recorded declines of about seven percent from 24 hours ago. A correction was also seen in the recently hyped sector of AI agents. Virtuals fell another 12 percent over a day, and ai16z fell about six percent. Both projects are now down more than 50 percent from their peaks.

Griffain, a leading representative of the DeFAI sector, saw a correction of about 13 percent, while Hey Anon, its biggest competitor, rose another 18 percent. This places founder Daniele Sesta's project among the current top performers.

Although Bitcoin is not far from its record high, the Altcoin market continues to bleed. There is concern within the crypto community about the possible end of the bull market. However, if the history of previous cycles repeats itself, the current correction may just be a healthy rebound for new highs. As in 2017 and 2021, the leading crypto currency corrected by more than 25 percent, followed by a new rally. So far, BTC has only experienced a decline of about 10 percent.

The macroeconomic and geopolitical uncertainty with Donald Trump's upcoming inauguration continues to worry markets. However, some analysts see in his statements only a short-term strategy to make the US dollar rise before his inauguration. This could benefit the stock market and Bitcoin.

For example, Felix Jauvin, a macro analyst at Blockworks, says: "It is in Trump's best interest to create as much uncertainty as possible, to drive U.S. government bond yields and the U.S. dollar as high as possible before his term begins, to use this as a bargaining chip and to boost assets strongly during his presidency."