The crypto market is down today, and there are a few big reasons behind the drop. Bitcoin, Ethereum, and other major cryptocurrencies have fallen after a mix of bad news from the U.S. economy. Here's a breakdown in simple terms.
Bitcoin Drops Below $115K
Bitcoin [ $BTC ] dropped nearly 3% earlier today, falling below the $115,000 mark. It has since bounced slightly, but the pressure on the market remains high. At the same time, U.S. stock markets also dropped, the S&P 500 Index fell by 0.37%, showing weakness across both traditional and crypto markets.
Tariff Announcement Shakes Markets
The biggest reason behind the panic? A new executive order from President Donald Trump, which raises tariffs on several countries.
Canada will now face a 35% tariff (up from 25%).
Other countries will see increases of 10% to 40%.
These new tariffs will start in 7 days, but there’s still time for negotiations.
Investors are worried that this could lead to more global trade tension, pushing money out of riskier assets like crypto and stocks.
Sticky Inflation Hurts Rate-Cut Hopes
Another major issue is inflation. The U.S. government’s preferred inflation measure, called the Core PCE, rose by 0.3% in June.
That’s higher than May’s 0.2%, and the yearly rate is now at 2.8%, above the Fed’s 2.0% target. This means inflation is still a problem, and the chances of interest rate cuts in September are now lower.
A few days ago, traders thought there was a 60% chance of a rate cut. Now, that’s down to just 41%. If the Fed doesn’t cut rates soon, borrowing will stay expensive, which is bad news for risk assets like crypto.
Altcoins Fall Harder: DOGE, XRP, SOL
With less hope for a rate cut and higher economic uncertainty, crypto prices have dropped across the board:
Dogecoin ( $DOGE ): Down 8%
Cardano ( $ADA ): Down 8%
Ripple (XRP): Down 6%
Solana (SOL): Down 6.7%
Binance Coin (BNB): Down 3%
Traders often move their money out of crypto when the market gets too risky. That’s exactly what’s happening now.
What It Means
Higher tariffs and sticky inflation are two big problems for investors. They create fear and uncertainty, which usually causes drops in high-risk markets like crypto.
Until we see progress in trade talks or a clear signal from the Fed about rate cuts, the crypto market could stay under pressure.
TL;DR:
Tariffs are rising globally, hurting investor confidence
Inflation is still high, cutting chances for lower interest rates
Bitcoin dropped under $115K, and altcoins fell even more.
Stay cautious, the markets are on edge.
