Bitcoin (BTCUSD) dropped below $87,000 on Tuesday, plunging from the $95,000 level two days earlier and the $100,000 mark it hit late last week. This significant drop raises the question: Why is crypto down?
Bitcoin‘s decline is not isolated. The crypto crash has triggered widespread panic in the markets, leaving investors wondering why crypto is crashing at such an alarming rate. Bitcoin, in particular, is already down over 20% from its peak of $109,000 last month, right before the inauguration of US President Donald Trump. Amid this backdrop, investors are searching for the best crypto to buy now, with some hoping that this decline presents an opportunity to scoop up undervalued assets.
The Impact of Economic Uncertainty on Bitcoin
Bitcoin‘s sharp decline after staying range-bound in previous weeks could be linked to growing concerns about U.S. economic issues, particularly trade and inflation. Investors in the best crypto to invest in are seeking stability, and the bitcoin rainbow chart has not been helpful in providing direction.
Trump reaffirmed at a press conference on Monday that tariffs on Canada and Mexico will go as scheduled. For a long time, economists have been concerned that imposing tariffs might cause inflation to spike again. After the January Consumer Price Index (CPI) came in hotter than anticipated, cryptocurrency investors will also be looking for hints in Friday’s inflation report, which is known as core Personal Consumption Expenditures (PCE), the Federal Reserve’s preferred inflation index.
In this environment, many are searching for what crypto to buy now and what assets can withstand the economic storm. For those seeking opportunities amidst volatility, platforms like Coinbase support are seeing increased activity as people aim to buy or sell cryptocurrencies. There are also discussions around finding the best crypto to buy now based on potential long-term growth.
For investors in riskier assets like stocks or cryptocurrency, persistent inflation would make it more difficult for the Fed to rapidly lower interest rates. The possibility that higher rates may result in greater yields on safer Treasurys has shaken both the stock and cryptocurrency markets. Amid this, the desire to invest in free bitcoin is growing, especially as many are turning to digital assets like the digital bits for safer investments.
The crypto lead in to coin market continues to show signs of volatility. As bitc continues its fluctuating patterns, experts are urging caution. Many wonder whether this could be the end of the crypto crash or a signal that further drops are to come.
