The downturn in the crypto market is attributed to several reasons, including¹:
- *Bitcoin Price Drop*: The price of Bitcoin experienced a significant decline in the past twenty-four hours, dropping below $90,000, a level not seen since mid-November 2024.
- *President Trump's Statements*: Statements by President Trump regarding the re-imposition of tariffs on imports from Canada and Mexico significantly decreased the price of Bitcoin.
- *Concerns about Inflation and U.S. Economic Growth*: Economic indicators such as the U.S. Services Purchasing Managers' Index (PMI) have raised concerns among investors, as the index recorded its lowest level in 22 months, indicating a slowdown in economic growth.
- *Exchange-Traded Fund (ETF) Flows*: These funds experienced a wave of outflows for six consecutive days, indicating a shift by investors towards reducing exposure to digital currency.
*The Most Decreased Cryptocurrencies*²:
- *Solana (SOL)*: Recently decreased by 15%, potentially setting up for a possible rise.
- *Ethereum (ETH)*: Decreased by 5-6% over the past few days.
- *Bitcoin (BTC)*: Dropped below $90,000, marking its lowest level in the past three months.
*Market Expectations*:
- Some analysts believe that the current period of extreme fear may show signs of trend reversal in the coming weeks.
- Continued trade and geopolitical tensions may extend the period of extreme fear in the market.
