As Bitcoin halving is now just a day away, the cryptocurrency market is going through a disturbing and unexpected trend.

While many investors expected the market to go through a period of incredible growth, that is not what is happening. Bitcoin (BTC) usually goes bullish heading into its halving, and that is what analysts expected this time as well. Dogecoin (DOGE) is dropping quickly, having lost nearly 23% of its value over the last week.

It is not just Dogecoin that is going bearish, though, as we get closer to Bitcoin’s halving. Bitcoin is down as well, and it has lost nearly 10% in the last week. Bitcoin has been hanging out near its support level and has fallen considerably from its recent all-time high record. Even though many analysts expected the coin to hit $80,000 or higher by this point in the year, that has not happened.

Ethereum (ETH) is on the decline as well, dropping about 13% over the last week despite a mostly strong showing this year. ETH’s price has been in sharp decline since early this month and does not look to be turning around and going bullish just because the halving is about to happen.

Why Dogecoin and Other Cryptos Are Declining

The main culprit for a bearish market is inflation. The US inflation rate is up to 3.5% for the past 12 months. That means it has increased by that percentage from this time last year.

Early on in 2024, economic experts expected that inflation would decrease, but that has not happened. Instead, the inflation rate has steadily increased month after month.

When the cryptocurrency market should be robust and gearing up for an exciting halving event, the opposite is true. Because of the high inflation rate, we expect Bitcoin’s halving to do very little positive for the wider market, but it may surprise us after the halving happens.