Bitcoin monthly price closed above $100k for the first time as the cryptocurrency struggles to maintain its footing above $102K. The digital asset initially showed strength, reaching $106K, but was met with resistance as market-wide corrections dragged its price down.
Bitcoin monthly price close data now reflects a 2% decline in value, with traders and analysts watching closely for signs of a potential rebound.
Despite attempts at recovery, Bitcoin’s market capitalization has fallen below $2.020 trillion, and its dominance over altcoins now sits at 55.6%. As BTC navigates this volatile price action, investors are eyeing the Federal Reserve’s monetary policies, macroeconomic conditions, and the broader crypto market sentiment for clues on its next move.
Bitcoin’s Price Action: A Month of Highs and Lows
The Bitcoin monthly price close reflects a turbulent period in the market. BTC started strong, reaching a peak of $106K, but bearish pressure quickly took hold, dragging the asset below $102K.
Monday’s drop below $98K was triggered by a broader market correction following AI-driven hype from DeepSeek, a China-based artificial intelligence project. The decline marked the first time in nearly two weeks that Bitcoin dipped below this critical support level.
By midweek, BTC attempted a recovery, surging past $106K, only to face renewed selling pressure. The Federal Reserve’s decision to maintain interest rates provided some temporary stability, but Bitcoin ultimately slipped back into a downtrend.
Federal Reserve Policy Weighs on Crypto Markets
The Federal Reserve’s decision to keep interest rates unchanged has had a significant impact on the Bitcoin monthly price close. Investors had hoped for a dovish stance that might favor risk-on assets like Bitcoin. However, the Fed’s cautious approach and hints at potential future hikes have left the market uncertain.
“Bitcoin is in a tug-of-war between bullish macro trends and short-term market jitters,” said Michael Van de Poppe, a prominent crypto analyst. “The monthly price close below $102K signals hesitancy among traders, but long-term fundamentals remain strong.”
Altcoins Face Mixed Performance as Solana Slumps
While Bitcoin monthly price close reflects a tough market, altcoins have seen mixed results. Solana (SOL) has taken a hit, dropping 8% on the weekly scale to trade below $230. The decline follows last week’s surge, fueled by the TRUMP token mania.
Other major altcoins, including XRP, ADA, BNB, DOGE, TRX, and AVAX, have posted losses. However, Ethereum (ETH), Chainlink (LINK), and Toncoin (TON) have managed slight gains. PEPE and Polkadot (DOT) have outperformed, jumping between 3-4% in the past 24 hours.
“Bitcoin monthly price close has created a ripple effect across the altcoin market,” said Ali Martinez, a leading crypto analyst. “Traders are taking a cautious approach, waiting for BTC to establish stronger support before making significant moves.”
Market Cap and Dominance Decline
Bitcoin monthly price close has resulted in a dip in market capitalization, now below $2.020 trillion. Its dominance over altcoins sits at 55.6%, indicating that capital is flowing into alternative assets despite the broader downtrend.
Meanwhile, the total crypto market cap has seen an $80 billion reduction, bringing it down to $3.630 trillion, according to CoinGecko. This reflects the overall cautious sentiment among investors as they navigate the latest market movements.
“The key takeaway from this Bitcoin monthly price close is that volatility remains high,” said Rafael Schultze-Kraft, co-founder of Glassnode. “The long-term trend remains bullish, but short-term fluctuations are keeping traders on edge.”
What’s Next for Bitcoin?
The Bitcoin monthly price close below $102K raises questions about the asset’s next move. Analysts are watching key support levels, particularly $98K, as a critical floor that could dictate the trend for February.
If Bitcoin manages to reclaim $106K, bullish momentum could return, potentially pushing the asset toward new highs. On the flip side, a break below $98K could see BTC testing lower support levels.
“Bitcoin has had a strong start to the year, but the monthly price close suggests that sellers are still in control,” said Scott Melker, known as ‘The Wolf of All Streets’. “For BTC to regain momentum, we need to see strong buying pressure above $106K.”
Key Takeaways from the Bitcoin Monthly Price Close
As Bitcoin struggles to close the month on a strong note, traders are bracing for continued volatility. The Bitcoin monthly price close below $102K signals short-term uncertainty, but long-term bullish sentiment remains intact.
With macroeconomic factors, Federal Reserve policy, and altcoin performance all influencing Bitcoin’s price action, the next few weeks will be critical in determining whether BTC can regain its footing above $106K or continue facing downward pressure.
For now, all eyes are on Bitcoin next major price move, as traders prepare for another month of potential market surprises. Get more from The Bit Gazette
