Bitcoin experienced a notable decline, dropping 22% from its January peak of $109K, appearing to form a double-top pattern. The ongoing issues within the meme coin market, including scams and a decrease in popularity, are affecting cryptocurrency values.

Trump’s official coin peaked at $74 before the inauguration but has now fallen to $12.80, showing a 4% decrease over the past day. Several other coin launches and scams have added to the market’s instability.

A general risk-off sentiment is present across markets, affecting high-profile assets like shares of PLTR, TSLA, and meme stocks. Bitcoin typically reflects broader equity market trends, which are currently negative, with the S&P 500 declining despite an initial rally.

Looking ahead, bitcoin lacks support until it reaches the $80K mark.

This decline in price aligns with concerns surrounding speculative assets, as traders reassess risk exposure. A dip of 22% from its peak suggests that confidence has weakened, and the double-top formation being observed raises questions about whether further downturns lie ahead. Historical chart patterns do not guarantee future performance, but they can influence decision-making, particularly when combined with external pressures such as weakening sentiment in meme coins.

The instability in that corner of the market is not surprising. Excessive hype fuelled by social media tends to accompany these sorts of assets, and once excitement fades, sell-offs accelerate. The crash of the Trump-related token from $74 to $12.80 highlights what happens when speculative enthusiasm collapses. A 4% decline in just a day further reinforces how rapidly prices can erode once momentum turns. Other similar ventures have also failed to sustain their initial appeal, deepening uncertainty across trading desks.

This hesitation is not contained within cryptocurrency alone. Broader sentiment across financial markets is cautious, with moves in PLTR, TSLA, and meme stocks confirming a shift away from riskier positions. Bitcoin typically trends in line with equity markets, particularly during periods of turbulence, and the S&P 500’s struggles reflect that investors are pulling back across multiple sectors. The initial rally that began in equities has now unwound, causing traders to rethink positions.

For bitcoin, the absence of support levels until around $80K means any additional selling pressure could accelerate losses. In past cycles, similar price patterns have resulted in extended drawdowns before finding stability. If traders continue reducing exposure to speculative assets, further downward movement would not be unexpected. Maintaining awareness of broader trends, particularly in equities, remains essential, as bitcoin’s correlation with traditional markets remains intact.