$USUAL Why have the markets been falling since January 7, 2025? $BTC

On January 7, 2025, the cryptocurrency market experienced a significant drop in several cryptocurrencies; Bitcoin fell below $96,000, a decrease of more than 5% in the last 24 hours, also dragging several other cryptocurrencies down with it.

This drop is mainly attributed to stronger-than-expected economic indicators in the United States, which have led investors to reconsider their expectations regarding potential interest rate cuts by the Federal Reserve (the Fed). In particular, the December PMI index from the Institute for Supply Management rose to 54.1 from 52.1 in November, and the November JOLTS report showed a greater number of job openings than anticipated.

These data suggest a more robust economy, which could delay the implementation of more flexible monetary policies. As a result, financial markets, including cryptocurrencies, reacted negatively to the possibility that interest rates may remain high for a longer period.

Additionally, significant liquidations were recorded in the cryptocurrency futures market. In the last 3 hours, over $300 million of leveraged traders were liquidated, contributing to downward pressure on prices.

It is important to note that, despite this correction, some analysts maintain an optimistic outlook for Bitcoin in the medium to long term. For example, the analysis and investment firm Bernstein projects that Bitcoin could reach $200,000 this year, indicating that the cryptocurrency has entered an "era of infinity."

References:

1. Criptonoticias.com. (2025, January 7)

2. Hoy.com.ni. (2025, January 8).