The cryptocurrency market is having a volatile week as Bitcoin (BTC) continues to weaken, dragging major altcoins such as Cardano ($ADA ), Solana ($SOL ), Binance Coin (BNB), and Ethereum ($ETH ) down in price. Investors are now focusing on US economic data and the inauguration of President Donald Trump, which are expected to have a major impact on the market.

Cardano Leads the Downtrend

  • Negative performance: ADA is down more than 8%, leading the decline among major tokens. Since the beginning of the week, ADA, SOL, BNB, and ETH have lost nearly 10% of their value.

  • Overall market: The #CoinDesk 20 index, which tracks the most liquid tokens, is down 2.87% over the past 24 hours, following a 7% drop on Wednesday.

Bitcoin Under Pressure

  • Reason: Bitcoin fell to near $93,000 after U.S. economic data beat expectations. A report from the Institute for Supply Management (ISM) showed its services price index hit its highest level since early 2023, pushing U.S. Treasury yields higher and reducing the appeal of risk assets like Bitcoin.

  • Defensive sentiment: Investment options in the #S&P500 index show higher downside risk than last year, reducing the recovery chances of risky assets.

Trump Event Could Be a "Boost" for the Market

  • Waiting-for-it sentiment: Financial markets are closely watching the inauguration of President Donald Trump on January 20. Trump is expected to push for business-friendly policies, economic reforms and possibly introduce a national Bitcoin reserve strategy.

  • Expert opinion: According to QCP Capital (#Singapore ), the current price correction is only temporary and the market may explode after Mr. Trump's inauguration.

Conclude

Currently, the crypto market is under pressure from economic data and investors' defensive sentiment. However, upcoming events, especially President Trump's inauguration, may bring hope for a new growth wave. Investors should closely monitor the signals from the market and prepare for major fluctuations ahead.