Bitcoin and most altcoins fell on Monday, continuing a downtrend that has continued since Donald Trump's inauguration.

Bitcoin (Bitcoin) to a low of $97,855, down about 10 percent from its high earlier this month. Other major laggards in the cryptocurrency industry include popular names like Fartcoin, Raydium, Pepe, and Virtuals Protocol, each of which is down more than 20%.

Many of these coins are trading well below their monthly highs. Fartcoin, a popular meme coin on Solana (Sol) The network is down 63% from its peak this month. Raydium, Solana's largest decentralized exchange, fell 20%, while Pepe fell almost 40%.

The first major reason for the collapse is the fact that investors adopted risk sentiment After the success of DeepSeek. This also explains why major stock market indices such as the Dow Jones, Nasdaq 100, and S&P 500 fell by more than 2%.

DeepSeek, a Chinese competitor to Anthropic's Claude, ChatGPT and xAI, was developed in less than four months and at a fraction of the cost. Its success has raised concerns about future demand for expensive chips from companies like NVIDIA and AMD, as well as broader market valuations.

Second, Bitcoin and altcoin prices fell as the market anticipates the upcoming interest rate decision from the Fed. Economists expect the Fed to maintain its hawkish tone due to rising inflation levels. A report released earlier this month revealed that the headline CPI rose from 2.7% in November to 2.9% in December.

Bitcoin and other cryptocurrencies often react negatively to the Fed's hawkish stance, as it typically sends bond yields higher.

Third, the declines were also driven by expectations of earnings reports from major technology companies, including Microsoft, Amazon, MetaPlatforms, Apple, and Tesla. The weak financial results of these companies could have a negative impact on the stock and cryptocurrency markets.

Bitcoin price chart pattern indicates more downside

The daily chart shows that Bitcoin price has formed a double-top chart pattern at $108,310, with a neckline at $90,000. The double top is widely considered one of the most bearish patterns in technical analysis.

On the positive side, Bitcoin remains above its 50-day and 100-day moving averages, indicating that the overall uptrend remains in place. However, the bearish outlook will persist as long as the price remains below the double top level at $108,310.