Why Is Bitcoin Falling Today? | Global News Avenue

Bitcoin (btcusd) fell below $87,000 on Tuesday, a sharp drop from $95,000 traded two days ago, testing a $100,000 selling price late last week – concerns over economic uncertainty deepened Sell In the cryptocurrency market.

Bitcoin is now down about 20% High history $109,000 last month ahead of the inauguration of U.S. President Donald Trump.

Economic uncertainty bears Bitcoin

After the rest Distance boundary In recent weeks, BitcoinThe sudden decline may be attributed to concerns about U.S. economic factors, especially inflation and Trade Policy.

In a press conference on Monday, Trump reiterated that tariffs on Mexico and Canada would go as planned. Economists have long feared that tariffs would reignite inflation. Crypto investors will also watch Friday’s inflation data– After the emergence of the Consumer Price Index (CPI) in January, the Fed’s preferred inflation measure (CPI) is called Core Personal Consumer Expenditure (PCE), which is the Fed’s preferred inflation measure. Hotter than expected.

Continuing inflation will make it harder for the Fed to actively lower interest rates, which is not good for investors Risky assets For example, cryptocurrency or stocks. Higher interest rates mean higher yields on less risky Treasury bonds, and the outlook has shaken the stock and cryptocurrency markets.

What should investors do?

Does this suddenly drop the chances of investors snatching Bitcoin at a more favorable price? According to the global head of Geoff Kendrick, Standard Chartered Global Digital Assets Research.

“Don’t buy dipping sauce, move to a $80 move and start,” Kendrick wrote in a research note. Coindesk “Before buying dipping sauce, I think we have a 1B (exchange-traded fund) outflow day,” the report said on Tuesday.

Investors from On-site Bitcoin Exchange Funds (ETFs) Net outflows on Monday were $539 million, according to Farside Investors. This is the second highest outflow day in 2025 and the fifth largest loss since trading began last January.

Kendrick and digital asset manager Bitwise previously predicted Bitcoin will soar to More than $200,000 In 2025.

Commemorating the end?

Since inauguration day, non-bitcoin crypto assets have reached a greater extent than Bitcoin. For example, Solana ((Solusd), this is a lot member The phenomenon has happened this cycle, and since Trump took office, its price has been reduced by almost half. Recent controversy in the Memecoin market has led some market observers to claim that this crypto fashion is coming to an end now.

Matt Hougan, chief investment officer of Bitwise, posted on Tuesday: “What Crypto is digesting is the end of Memecoin Boom right now,” he added, for Melania and Libra (like Melania and Libra) The hype will “kill” the memorial craze within six months.

Libra tokens have dropped by about 20% over the past 24 hours, Melania Token According to CoinMarketCap, 23% lost and Trump’s tokens fell 11%.