Bitcoin $107,955.4 and the overall altcoin market has made a strong recovery following Monday’s early sell-off. This rebound comes amid growing excitement around Donald Trump’s inauguration and strong demand for TRUMP meme coins. However, investors seem to take a cautious stance with the Bank of Japan’s decision to increase interest rates.
Bitcoin and Altcoins Depend on Macro Developments
Over the last 24 hours, Bitcoin price has experienced major fluctuations, falling below the $100,000 level and then reaching an all-time high of approximately $110,000. The launch of TRUMP meme coins, supported by Donald Trump’s inauguration, was the reason for this surge. Crypto market analyst Rekt Capital stated that the weekly close must be above $104,740 for Bitcoin to confirm new all-time highs moving forward.
The analyst adds on the chart:
“If the weekly close falls below the red line, it may be possible for BTC to pull back again. However, this may be shallower than the pullback in mid-December 2024.”
While overall crypto market liquidations rose to $1.26 billion, Bitcoin liquidations were only $204 million. This indicates that the altcoin space is experiencing a deeper correction with the launch of the TRUMP and MELANIA meme coins. Ethereum 
$3,363.8 The price did not meet expectations again after Donald Trump’s DeFi project World Liberty Financial purchased a large amount of ETH in the last 24 hours. The altcoin season index rose above 50 again, giving signs of recovery.
Popular crypto analyst Michael van de Poppe said, “We had a big weekend in altcoins with TRUMP. I expect ETH, LINK, AAVE and many altcoins to strengthen next week. $DXY is weakening as yields fall. “There are great times ahead.” He continued his optimism towards altcoins.
Will the Bank of Japan Be an Obstruction?
The Bank of Japan (BOJ) is expected to increase interest rates on Friday, which is expected to reach the highest levels in 17 years. This potential rate hike would demonstrate the central bank’s determination to gradually increase the current 0.25% rate towards a target of around 1%. At the end of its two-day meeting, the BOJ is expected to raise the short-term policy rate to 0.5%. This move, which would be the first interest rate increase since July last year, led to significant market fluctuations in August, along with weak US jobs data at the time.
But this time, US jobs data is coming in strong and core CPI is declining. Therefore, a major turmoil is not expected in Bitcoin and altcoins.
In light of these developments in the markets, it is important for investors to determine their strategies by taking into account both local and global macroeconomic factors.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
