Why Crypto is Down: Economic Strength Shakes Markets

The crypto and stock markets faced significant declines on January 7, 2025, as stronger-than-expected economic data cast doubt on the timing of Federal Reserve rate cuts.

Bitcoin dropped over 5% in the past 24 hours, hitting $96,909. The sell-off led to more than $483 million in long positions being liquidated, according to Coinglass. Other cryptocurrencies also took a hit, with Ethereum down over 8% and Solana falling more than 7%.

The market downturn was fueled by two key economic reports. The Institute for Supply Management's December PMI rose to 54.1, beating November’s 52.1