Today, the global virtual currency market has witnessed a significant decrease. Its market capitalization saw a 7.05% drop to currently at $3.35 trillion. This decrease caused the fear and greed index to drop to 71, indicating that market sentiment has slightly cooled. However, market volume experienced a 78.85% rise to $143.41 billion.
Bitcoin at $98k
Today, Bitcoin saw a 5.88% decline to currently trading at $98,813.25. However, its dominance remained robust at 58.44% with its market capitalization at $1.96 trillion. Its trading volume rose 144.75% to $51.72 billion, highlighting expanded user activity.
Altcoin and wider crypto markets down
Today, all altcoins in the top 10 major cryptocurrency section are down, reflecting the broader market experiencing increasing pressure.
As a result, Ethereum dropped by 7.33% to $3,081.53. XRP also saw a 9.93% decrease to $2.82. Solana registered an 11.16% drop to $227.
Others including BNB, Dogecoin, Cardano, and TRON also experienced drops of 5.39%, 10.39%, 10.21%, and 5.82% respectively, signaling the current market’s bearish sentiment.
Today’s market’s decline is linked with anxiety among investors and traders over the Fed’s first meeting of the year. The first meeting is scheduled for January 28-29 when the Fed will talk about how longer lending rates are going to remain high.
Besides this anxiety, the crypto market drop is also connected to the decrease in US stock futures. Apart from that, DeepSeek, a Chinese AI platform, has suddenly stunned the market.
DeepSeek, which competes with its rival ChatGPT, recently became available on the Apple App Store, and as a result, users can use it for free. What makes this development interesting is the cost used for developing DeepSeek was just under $10 million compared to ChatGPT’s whopping $157 billion valuation.
Due to this unexpected success, American investors have become nervous as they are concerned that multiple US tech stocks could be overvalued. This hesitation caused massive selling in the American stock market, which rapidly spread to the virtual currency market, making traders sell their assets on a wide scale.
Top news in the market
First, decentralized exchange Jupiter announced a plan to start using 50% of its exchange fees to buy back JUP tokens, which would be held for long-term activities. The exchange said it will reinvest the remaining 50% into development, stabilization of its business activities, and future priorities.
Elsewhere, Coinbase’s CEO suggested the need to change the exchange’s token listing process to respond to the rapid rise of new token creation. He acknowledged the unrealistic task of evaluating each one million tokens created every week. He therefore suggested the need to abandon the ‘allow list system’ to embrace the ‘block list approach,’ which includes customer reviews and automatic on-chain data assessment to handle the large-scale influx
Top gainers
Various upcoming altcoins gained visibility for their tremendous performance in today’s market.
Regent Coin (REGENT) emerged as the top gainer with a massive 170% rise in the last 24 hours. HoldCoin (HOLD) followed with a remarkable 93.9% increase while SORA secured position three with a 66.7% upsurge.
Cryptex Finance (CTX) grabbed the fourth spot with a 51% rise. Lastly, Elon Trump Fart (ETF500) closed today’s top gainers list with a 43% price increase.
