#ShareYourThoughtOnBTC
Bitcoin has experienced a significant decline recently, dropping from its January peak of over $100,000 to approximately $83,957 today. This bearish trend can be attributed to several interrelated factors:
1. Federal Reserve's Recession Warning: The Federal Reserve has projected a 2.8% decrease in U.S. GDP by the end of the first quarter of 2025, marking the most substantial economic contraction since the early days of the COVID-19 pandemic. Such forecasts heighten recession fears, leading investors to move away from riskier assets like cryptocurrencies.
2. Implementation of New U.S. Tariffs: The U.S. administration's decision to impose new tariffs on Canada, Mexico, and China has escalated concerns about a global trade war. These measures have negatively impacted global stock markets, with significant declines observed in major indices. The resulting economic uncertainty has further dampened investor sentiment toward cryptocurrencies.
3. Declining Global Money Supply: A reduction of $4.1 trillion in the global money supply has been observed, reaching its lowest level since August. Historically, decreases in the money supply have correlated with downturns in Bitcoin's price, suggesting that the current contraction could be contributing to Bitcoin's recent decline.
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