Why Bitcoin Is Down Today? Exploring the Economic Impact on the Crypto Market Crash
Bitcoin price took a hit, falling to $96,000, marking its biggest sell-off so far in 2025, with altcoins not far behind. But amid the economic downturn, major buyers have stepped in to reverse the decline. If you’re wondering why this is happening, you’re not alone – many are confused about the market moves, but Altcoin Daily analyst Analyzed the current market situation.
January is shaping up to be a disastrous month for altcoins as markets panic with Trump’s inauguration and FOMC meeting. Concerns that Trump’s biggest plans to create a Bitcoin reserve and pass cryptocurrency regulation will be delayed were the reasons behind the recent crash.
The real reason behind the sell-off
Cryptocurrency markets are feeling the heat thanks to new U.S. economic data. Despite the strong economy, things are not looking good for risk assets like Bitcoin. The Federal Reserve is working aggressively to control inflation, and recent job openings data – the highest since June 2024 – caused the U.S. 10-year Treasury yield to surge. This suggests that the Federal Reserve may not cut interest rates as expected, causing the cryptocurrency market to fall.
Trump effect? Not exactly
Amid the sell-off, some are blaming Donald Trump, citing concerns that he is changing his stance in favor of cryptocurrencies. However, analysts believe this is not the case. Trump’s appointment is promising for the cryptocurrency space because of his personal support for digital assets and innovation. There is optimism that Trump could make the United States a global leader in cryptocurrency regulation, even surpassing places like Dubai and Singapore.
Big predictions for Bitcoin’s future
Despite the current decline in Bitcoin prices, the market is optimistic about increasing ETF inflows and Bitcoin has a bright future. The channel believes that Bitcoin could surge to over $100,000 by 2025, and possibly even $200,000. While some analysts are predicting a more conservative upper limit of $125,000 to $150,000, many may sell prematurely and miss out on long-term gains. Wall Street is also becoming increasingly involved in Bitcoin, with many altcoins poised to experience significant growth in the coming years.
The market is expected to grow significantly in 2025 as the political situation changes. With major players buying the dip and a bullish long-term outlook, now may be the best time to own the asset. Hang in there, because 2025 could be the year of big gains for cryptocurrencies.
