Bitcoin’s Recent Decline

As of today, Bitcoin’s value has dipped beneath the $87,000 mark, achieving such a low after reaching an unprecedented peak exceeding $109,000 just last month. Economic anxieties regarding inflationary pressures and trade tariffs are contributing to this downturn in digital currency markets. A certain financial analyst predicts a continued descent in Bitcoin’s valuation, advising caution to those considering buying during the dip.

The Influence of Solana-based Memecoins

Solana-based memecoins are being held accountable for many of the recent issues faced by the broader cryptocurrency sector. One expert has asserted that we are witnessing the conclusion of the “memecoin boom.”
Investors are urged to reconsider their strategy as the potential for further decline looms. This cautionary stance is echoed by the Global Head of Digital Assets Research at Standard Chartered, Geoff Kendrick, who advises patience.

Bitcoin achieved a record high of $109,000 shortly before U.S. President Donald Trump’s inauguration.

The Impact of Inflation Metrics

After staying steady, indicators like the core Personal Consumption Expenditures (PCE), the Federal Reserve’s favored measure of inflation, are being closely observed following the January figures from the Consumer Price Index (CPI). These indicators affect decisions on investments, whether in cryptos or equities. Raised interest rates suggest increased returns on safer Treasury securities, unsettling both equity and crypto markets.

The Future Outlook on Bitcoin

Does this abrupt decline provide an opening for potential investors to purchase Bitcoin at a more attractive rate? Few would agree, with Geoff Kendrick of Standard Chartered cautioning against immediate investment. “The move to the low $80s is anticipated,” Kendrick noted in a report published by Coindesk on Tuesday, stressing that before any profitable dip buying can occur, a $1B exchange-traded fund outflow day seems likely.
Amidst these turbulent times, non-Bitcoin cryptocurrencies have experienced even harsher declines since Inauguration Day. This cycle has seen phenomena where some have seen their value nearly halved since Trump assumed office. Recent upheavals in the memecoin scene have led several market analysts to proclaim the end of this crypto trend.

The End of the Memecoin Era?

“The memecoin craze is unraveling before our eyes,” declared Matt Hougan, Chief Investment Officer at Bitwise, on X this Tuesday. He further stated that the buzz surrounding tokens such as Melania and Libra might spell the downfall of the memecoin fervor within half a year.
In just the last day, the Libra token has experienced a decline of about 20%.

In 2025, investors began withdrawing their funds with urgency.