The post Why Bitcoin Is Down Today? Exploring the Economic Impact on the Crypto Market Crash appeared first on Coinpedia Fintech News
Bitcoin’s price took a significant hit and dived to the $96K level, marking its biggest selloff of 2025 so far, and altcoins followed suit. But amidst this downturn, major buyers are stepping in to scoop up the dip. If you’re wondering why this is happening, you’re not alone — many are confused by the market movement, but the Altcoin Daily analyst has analyzed the current market scenario.
The market is in a state of panic with Trump’s inauguration and FOMC meeting the month of January will be a catastrophic month for altcoins. There is fear that Trump’s biggest plan to create the Bitcoin reserve plan and pass crypto regulations will be delayed is the reason behind the recent crashes.
The Real Reason Behind the Selloff
The crypto market is feeling the heat due to new U.S. economic data. While the economy shows strength, it’s not all rosy for risk assets like Bitcoin. The Federal Reserve is actively working to control inflation, and recent job openings data — the highest since June 2024 — has contributed to a spike in U.S. 10-year Treasury yields. This suggests that the Fed might not be cutting rates as expected, which has caused the crypto market to dip.
The Trump Effect? Not Quite
Amid the selloff, some are blaming Donald Trump, citing concerns that he’s changing away from his pro-crypto stance. However, the analyst argues that this isn’t the case. Trump’s appointments are promising for the crypto space, with individuals who support digital assets and innovation. There’s optimism that Trump could make the U.S. a global leader in crypto regulation, even surpassing places like Dubai and Singapore.
Big Predictions for Bitcoin’s Future
Despite the current dip, the market is bullish about raising ETF inflow there is a bright future for Bitcoin. The channel believes Bitcoin could soar well beyond $100,000 in 2025, possibly even reaching $200,000. While some analysts predict a more conservative top of $125K to $150K, there’s a risk that many will sell too early, missing out on the long-term gains. Wall Street is also getting more involved in Bitcoin, and many altcoins are poised for big growth in the coming years.
With the changing political scenario, the market is poised for significant growth in 2025. With major players buying the dip and a long-term bullish outlook, now might be the perfect time to hold onto your assets. Stick with it, as 2025 could be the year for massive crypto gains.