Why Bitcoin Is Down Today? Exploring the Economic Impact on the Crypto Market Crash

Bitcoin’s price took a significant hit and dived to the $96K level, marking its biggest selloff of 2025 so far, and altcoins followed suit. But amidst this downturn, major buyers are stepping in to scoop up the dip. If you’re wondering why this is happening, you’re not alone — many are confused by the market movement, but the Altcoin Daily analyst has analyzed the current market scenario. The market is in a state of panic with Trump’s inauguration and FOMC meeting the month of January will be a catastrophic month for altcoins. There is fear that Trump’s biggest plan to create the Bitcoin reserve plan and pass crypto regulations will be delayed is the reason behind the recent crashes.

The Real Reason Behind the Selloff

The crypto market is feeling the heat due to new U.S. economic data. While the economy shows strength, it’s not all rosy for risk assets like Bitcoin. The Federal Reserve is actively working to control inflation, and recent job openings data — the highest since June 2024 — has contributed to a spike in U.S. 10-year Treasury yields. This suggests that the Fed might not be cutting rates as expected, which has caused the crypto market to dip.