Why is the cryptocurrency market crashing today, January 7, 2025?
The cryptocurrency market started 2025 with instability, and today it is clear that the decline has intensified. Here are the key reasons:
1️⃣ Sharp sell-offs of major players.
The market is seeing high activity from large holders transferring significant amounts of cryptocurrency (BTC, ETH) to exchanges. For example, according to blockchain analysts, addresses associated with large funds have transferred more than 12,000 BTC to exchanges over the past 24 hours. This has put pressure on the price.
2️⃣ Macroeconomic uncertainty.
Early this morning, employment data in the U.S. was released, which turned out better than expected. This strengthened the dollar and led to a decrease in investor interest in crypto assets as risky instruments.
3️⃣ Panic in the stablecoin market.
USDT from Tether temporarily lost its peg to the dollar (dropped to $0.993). This caused distrust among retail investors and prompted them to sell other assets. Although stabilization has already begun, overall damage to the market has been done.
4️⃣ Market speculations and liquidations.
According to Binance, over $450 million in long positions were liquidated in the last 24 hours. This intensified the chain reaction of price declines.
5️⃣ Rumors about regulation.
This morning, news emerged that the U.S. Securities and Exchange Commission (SEC) is preparing to tighten rules for crypto projects working with DeFi. This intensified pressure on coins associated with this sector, including Ethereum.
What is happening now:
• BTC
• $ETH
• $XRP
• $BNB
Forecast and recommendations:
Current volatility may persist until the end of the week as markets digest all the negative factors. It is recommended to refrain from high-risk positions and monitor key support levels: $95,000 for BTC and $1,500 for ETH.
❗️Stay vigilant and remember that during periods of strong sell-offs, promising entry points may appear for long-term investors.
