Why did Bitcoin fall today? Explore the economic impact of the cryptocurrency market crash

Bitcoin price took a big hit and dropped to the $96,000 level, marking its biggest sell-off of 2025 so far, and altcoins followed suit. But in the midst of this downturn, big buyers are stepping in to capture the decline. If you’re wondering why this happens, you’re not alone — many are confused by the market movement, but Altcoin Daily analyst He analyzed the current market scenario.

The market is in panic mode with Trump’s inauguration and the January FOMC meeting will be a disastrous month for altcoins. There is a fear that Trump’s biggest plan to create a Bitcoin reserve plan and pass cryptocurrency regulations will be delayed, which is the reason behind the recent breakdowns.

The real reason behind the sales

The cryptocurrency market is feeling nervous due to new US economic data. While the economy is showing strength, it’s not all rosy for risk assets like Bitcoin. The Fed is actively working to control inflation, and recent jobs data – the highest since June 2024 – has contributed to a rise in 10-year US Treasury yields. This indicates that the Federal Reserve may not cut interest rates as expected, causing the cryptocurrency market to decline.

Trump effect? not quite

Amid the sell-off, some are blaming Donald Trump, citing concerns that he is shifting away from his pro-crypto stance. However, the analyst says that this is not the case. Trump’s appointments are promising for the cryptocurrency space, with individuals who support digital assets and innovation. There is optimism that Trump could make the US a global leader in cryptocurrency regulation, even beating places like Dubai and Singapore.

Great predictions for the future of Bitcoin

Despite the current decline, the market is optimistic about increased ETF inflow, and there is a bright future for Bitcoin. The channel believes that Bitcoin could rise beyond $100,000 in 2025, possibly reaching $200,000. While some analysts are forecasting a more conservative top of $125,000 to $150,000, there is a risk that many will sell too early, missing out on long-term gains. Wall Street is also becoming more involved in Bitcoin, and many altcoins are poised for significant 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 long-term bullish outlook, now may be the perfect time to hold on to your assets. Stick with it, as 2025 could be the year for huge gains in the cryptocurrency space.