Here's a quick and clear overview of the reasons why the cryptocurrency market is now declining (as of April 6, 2025):
📉 **Why crypto is falling?
1. Profit taking after growth.
Bitcoin's recent jump above $85,000 caused massive profit taking. Investors started selling to lock in gains - this is natural after a meteoric rise.
2. Expectation of Fed's tight policy
Rumors have intensified in the market that the US Fed may raise interest rate again due to persistent inflation. This makes risk assets (including crypto) less attractive.
3. Political instability.
News from South Korea (panic on stock exchanges), tensions in the Middle East and discussion of TikTok restrictions in the U.S. add to market nervousness - and investors go to “safe havens”, such as gold and the dollar.
4. Regulatory pressure
Some countries are tightening controls on cryptocurrencies. For example, the SEC has started checks on XRP again, and Binance has cut support for some tokens (BRC-20). This is creating uncertainty.
5. Dollar Growth
The dollar index (DXY) is rising - this often puts pressure on crypto as they move in opposite directions.
⚠️ Bottom line:
The market is not crashing - it's more of a correction after a strong rise. Investors are now cautious, locking in profits and waiting for clarity on rates, regulation and geopolitics.
If the situation stabilizes, interest in crypto may return in the coming weeks. Subscribe to not miss news in the cryptocurrency world
