Bitcoin and the overall altcoin market have registered strong comeback after an early sell-off on Monday. This recovery comes amid growing euphoria around the Donald Trump inauguration as well as strong demand for TRUMP meme coins. However, investors are likely to undertake a cautious stand with Bank of Japan’s rate hike decision. Bitcoin and Altcoins Subject to Macro Developments Bitcoin price has seen massive volatility in the last 24 hours, falling under $100K levels, and then forming a 10% god candle to an all-time high around $110K. The euphoria around the launch of TRUMP meme coins supported by Donald Trump inauguration on Monday has been the cause of volatility. Crypto market analyst Rekt Capital stated that Bitcoin needs a weekly close above $104,740 to confirm fresh all-time highs moving ahead. Source: Rekt Capital Commenting on his chart further, the analyst added: “A Weekly Close below red and it’s possible BTC could pullback again, however likely for a shallower retrace compared to the one of mid-December 2024”. Furthermore, macro developments like dropping core CPI and strong US jobs data have also contributed to the rally. Investors will now be closely watching the Bank of Japan’s interest rate decision this Friday, as it plans to take rates to a 17-year high. Following today’s breakout, technical charts suggest that Bitcoin price rally to $158,000 is still in play. #Bitcoin $158,000 target still in play pic.twitter.com/qzBnKVFsUo — Titan of Crypto (@Washigorira) January 20, 2025 Altcoins Market Sees Strong Recovery The overall crypto market liquidations have soared to $1.24 billion of which Bitcoin liquidations are just $204 million, as per the Coinglass data . Thus, the altcoin space is facing even deeper correction with the TRUMP and MELANIA meme coin launch . The Ethereum price is up 8% today after Donald Trump’s DeFi project World Liberty Financial purchased a large number of ETH coins in the last 24 hours. The good this is that the altcoin season index is showing signs of recovery jumping above 50 once again. Source: Blockchain Center Popular crypto analyst Michael van de Poppe remains bullish on altcoins . He said: “A tremendous weekend with TRUMP and a cascade on the altcoins. I expect that we’ll see strength on ETH, LINK, AAVE and a lot of altcoins in the coming week as Yields are going down and the $DXY becomes weaker. Great times are ahead of us”. Will Bank of Japan Play the Spoilsport? The Bank of Japan (BOJ) is anticipated to raise interest rates on Friday, to the highest levels in 17 years after the 2008 financial crisis. This potential rate hike would signal the central bank’s commitment to gradually increasing rates, currently at 0.25%, towards a target of around 1%. During its two-day meeting concluding on Friday, the BOJ is expected to lift its short-term policy rate to 0.5%. If implemented, this would mark the first rate hike since July of last year, a move that, combined with weak U.S. jobs data at the time, led to significant market turbulence in early August. However, this time the US jobs data has shown strength along will falling core CPI . Thus, any major upheaval in Bitcoin and altcoins is unlikely moving ahead, is unlikely. The post Will Bitcoin and Altcoins Crash Following Bank of Japan Rate Hike This week? appeared first on CoinGape .
