Crypto Chaos: Why Bitcoin & Altcoins Are Crashing Today!
Crypto market drops 0.37% as tariffs and Fed fears grip investors. Is Bitcoin safe? Unravel the market mayhem!
Crypto Chaos: Why Bitcoin & Altcoins Are Crashing Today!
The crypto market is reeling, with its total capitalization falling 0.37% to $3.25 trillion in the last 24 hours, as reported by crypto.news on May 7, 2025. Bitcoin ($BTC) dipped 0.23% to around $92,500, while altcoins like Raydium ($RAY) crashed 14% amid heavy sell-offs. So, what’s behind this sudden downturn, and how can crypto investors navigate the storm?
What’s Happening?
President Trump’s tariff threats, including a 10% universal import tax and higher duties on Chinese goods, are rattling global markets. The Dow plummeted 390 points on May 6, reflecting fears of inflation and trade war fallout. Adding to the tension, the Federal Reserve’s May 7 meeting could signal tighter policy, with Chair Jerome Powell under pressure from Trump’s criticism. Posts on X show traders bracing for volatility, with some pointing to $1.2M in Raydium transfers as a sign of profit-taking in DeFi. Meanwhile, gold hit record highs as a safe haven.
President Trump’s tariff threats, including a 10% universal import tax and higher duties on Chinese goods, are rattling global markets. The Dow plummeted 390 points on May 6, reflecting fears of inflation and trade war fallout. Adding to the tension, the Federal Reserve’s May 7 meeting could signal tighter policy, with Chair Jerome Powell under pressure from Trump’s criticism. Posts on X show traders bracing for volatility, with some pointing to $1.2M in Raydium transfers as a sign of profit-taking in DeFi. Meanwhile, gold hit record highs as a safe haven.
Why It Matters
Tariffs could spike costs, hurting stocks and speculative altcoins most. Bitcoin, down 10% year-to-date compared to the Nasdaq’s 16%, is holding up better, hinting at its growing role as a hedge. The Fear & Greed Index at 39 reflects caution, but $38.8M in Bitcoin ETF inflows shows institutional interest persists. A hawkish Fed could push crypto lower, while a dovish tone might trigger a rebound, especially for $BTC, which faces support at $90,000.
Tariffs could spike costs, hurting stocks and speculative altcoins most. Bitcoin, down 10% year-to-date compared to the Nasdaq’s 16%, is holding up better, hinting at its growing role as a hedge. The Fear & Greed Index at 39 reflects caution, but $38.8M in Bitcoin ETF inflows shows institutional interest persists. A hawkish Fed could push crypto lower, while a dovish tone might trigger a rebound, especially for $BTC, which faces support at $90,000.
What’s Next?
Powell’s comments today could make or break the market. A hint at rate cuts may lift $BTC toward $100,000, but tariff escalation or high rates could deepen losses. Investors should diversify and watch key support levels.
Powell’s comments today could make or break the market. A hint at rate cuts may lift $BTC toward $100,000, but tariff escalation or high rates could deepen losses. Investors should diversify and watch key support levels.
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NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
