💥Cryptocurrencies are facing a drop in prices today, influenced by several recent factors.
🎯One of the main reasons is the uncertainty regarding US policy on digital assets. Since President Donald Trump took office on January 20, 2025, investors have been expecting clear measures to support cryptocurrencies. Although the new administration proposed a task force on digital assets, the long-awaited creation of a strategic Bitcoin reserve did not materialize, generating disappointment in the market.
🎯In addition, macroeconomic factors have been negatively impacting the crypto market. Recent data from the US Bureau of Labor Statistics indicated a spike in inflation in January, reducing the likelihood of the Federal Reserve cutting interest rates anytime soon. Higher interest rates make safer investments like bonds more attractive compared to risky assets like cryptocurrencies.
🎯Another event that contributed to the volatility was the collapse of the memecoin $LIBRA, promoted by Argentine President Javier Milei. After a rapid increase in value, the cryptocurrency plummeted, resulting in significant losses for investors and negatively affecting confidence in the crypto market.
🎯Bitcoin (BTC) is currently trading at $95,724, down 0.35% from its previous close. Other cryptocurrencies are also down: Ethereum (ETH) is down 2.23%, BNB is down 1.94%, Cardano (ADA) is down 2.26%, and Solana (SOL) is down 8.47%.
🎯These combined factors — political uncertainty, macroeconomic pressures, and specific market events — have contributed to the recent devaluation of cryptocurrencies.