🚨🚨Why Is the Crypto Market Falling? Bitcoin Drops to $113K😮💨🥲
$BTC Bitcoin has dropped to around $113,000, and the rest of the crypto market is following. Here's a breakdown of the key reasons:
1. Macro Factors: Inflation, Tariffs & Weak U.S. Jobs Data
New U.S. tariffs announced by Donald Trump created market uncertainty, causing capital to flow out of risk assets.
The U.S. jobs report showed only +73,000 new jobs, far below the expected 200,000+, and previous months were revised downward — raising fears of recession.
2. Federal Reserve's Hawkish Stance
The Fed kept interest rates high (4.25–4.50%) and signaled no rate cuts in the near term — making risk assets like crypto less attractive.
3. Profit-Taking by Institutional Investors
After Bitcoin hit an ATH near $123,000, some investors started taking profits, triggering a correction in $BTC and altcoins.
Bitcoin ETFs have seen both inflows and significant outflows, adding to the market’s instability.
4. Whale Activity & Liquidations
Crypto whales moved $4.8B in assets, which triggered liquidations and cascading sell-offs.
BTC has been stuck between $109K–$116K, and technical indicators like RSI show divergence — signaling potential weakness.
📉 Summary:
🔹Macroeconomic stress, hawkish Fed policy, and geopolitical tension are pushing the market down.
🔹Institutional exits and ETF volatility are intensifying the moves.
🔹Combined with whale activity and technical pressure — this is a natural corrective pullback.
🔮 Short-Term Outlook:
🔹BTC may test the $109K–$110K support zone. A breakdown could lead to another wave of selling.
🔹$ETH and alts may face 5–10% more downside depending on Bitcoin’s movements.
📊 What Traders Should Do:
🔹Avoid high leverage during high volatility.
🔹Watch key releases: inflation data, Fed comments, and tariff news.
🔹Consider entries only after BTC shows strength above $113K or on news-driven bounces.