Crypto Crash Alert: Why Bitcoin & Altcoins Are Tanking Today!
Crypto market dips 0.37% as tariffs and Fed fears spark caution. Can Bitcoin hold firm? Uncover the chaos!
Crypto Crash Alert: Why Bitcoin & Altcoins Are Tanking Today!
The crypto market is feeling the heat, with total capitalization dropping 0.37% in the last 24 hours to $3.25 trillion, as reported by crypto.news on May 7, 2025. Bitcoin ($BTC) slid 0.23% to around $92,500, while altcoins like Raydium ($RAY) plummeted 14% due to heavy sell pressure. So, what’s driving this downturn, and should investors be worried?
What’s Happening?
President Trump’s tariff threats, including a 10% universal import levy and higher duties on Chinese goods, are spooking markets. The Dow fell 400 points on May 5, and the S&P 500 lost 0.6%, reflecting fears of a trade war that could spike inflation and slow growth. The Federal Reserve’s May 7 meeting adds tension, with traders awaiting Chair Jerome Powell’s stance on rates amid Trump’s criticism. Posts on X highlight investor caution, with some eyeing Bitcoin as a hedge, though it’s not immune to risk-off sentiment. Raydium’s drop, tied to $1.2M in large transfers, signals profit-taking in DeFi.
President Trump’s tariff threats, including a 10% universal import levy and higher duties on Chinese goods, are spooking markets. The Dow fell 400 points on May 5, and the S&P 500 lost 0.6%, reflecting fears of a trade war that could spike inflation and slow growth. The Federal Reserve’s May 7 meeting adds tension, with traders awaiting Chair Jerome Powell’s stance on rates amid Trump’s criticism. Posts on X highlight investor caution, with some eyeing Bitcoin as a hedge, though it’s not immune to risk-off sentiment. Raydium’s drop, tied to $1.2M in large transfers, signals profit-taking in DeFi.
Why It Matters
Tariffs could raise costs, denting demand for risk assets like crypto. Bitcoin’s slight decoupling from stocks—down 10% year-to-date versus Nasdaq’s 16%—suggests resilience, but altcoins face steeper losses. The Fear & Greed Index at 39 reflects unease, yet $38.8M in Bitcoin ETF inflows shows institutional interest persists. A hawkish Fed could further pressure prices, while a dovish tone might spark a rebound.
Tariffs could raise costs, denting demand for risk assets like crypto. Bitcoin’s slight decoupling from stocks—down 10% year-to-date versus Nasdaq’s 16%—suggests resilience, but altcoins face steeper losses. The Fear & Greed Index at 39 reflects unease, yet $38.8M in Bitcoin ETF inflows shows institutional interest persists. A hawkish Fed could further pressure prices, while a dovish tone might spark a rebound.
What’s Next?
Powell’s comments today could dictate Bitcoin’s next move—dovish signals may lift $BTC toward $100,000, but tariff escalation or high rates could deepen the dip. Investors should watch support levels around $90,000 for Bitcoin and diversify to manage risks.
Powell’s comments today could dictate Bitcoin’s next move—dovish signals may lift $BTC toward $100,000, but tariff escalation or high rates could deepen the dip. Investors should watch support levels around $90,000 for Bitcoin and diversify to manage risks.
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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.
