Cryptocurrency market is experiencing a downturn. Bitcoin (BTC) is trading at $94,112, down 1.62% from the previous close, with an intraday low of $93,753. Ethereum (ETH) stands at $2,629.30, a 3.54% decrease, reaching as low as $2,608.86 today. Other major cryptocurrencies like BNB, Cardano (ADA), and Solana (SOL) have also seen declines of 4.01%, 6.04%, and 7.52% respectively.
Several factors contribute to this market decline:
• Regulatory Uncertainty: Despite initial optimism, President Donald Trump’s administration has yet to implement anticipated pro-crypto policies, such as establishing a Bitcoin strategic reserve. The Securities and Exchange Commission (SEC) has formed a digital-asset task force, but comprehensive regulatory clarity remains absent. 
• Macroeconomic Conditions: Recent inflation data has surpassed expectations, reducing the likelihood of Federal Reserve interest rate cuts. This economic environment makes riskier assets like cryptocurrencies less appealing compared to traditional investments such as bonds. 
• Market Sentiment: Incidents like the $LIBRA cryptocurrency crash in Argentina, following its promotion by President Javier Milei, have shaken investor confidence. 
Despite the current downturn, industry experts maintain a positive long-term outlook. Anthony Scaramucci, head of the First Trust SkyBridge Crypto Industry & Digital Economy ETF, predicts that Bitcoin could reach $200,000 in 2025, potentially elevating its market capitalization to $4 trillion.  Similarly, analysts at Bitwise and VanEck project Bitcoin prices of $200,000 and $180,000 respectively by the end of 2025. 
In summary, while the cryptocurrency market faces short-term challenges due to regulatory uncertainties and macroeconomic factors, the long-term perspective remains optimistic, with potential for significant recovery and growth in the coming months.
$BTC