Bitcoin's dramatic two-day plunge has rattled the crypto market, erasing nearly all of its early 2025 gains and sparking a fresh wave of investor anxiety.

Amid fears of rising inflation, surging bond yields, and potential US tariff policies under the incoming administration, Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term fell to a low of $92,900 today (Wednesday), leaving traders debating its next move.

Fed Policy and Tariff Concerns

The selloff began earlier this week as strong US economic data caused fears that the Federal Reserve might maintain a hawkish stance longer than anticipated, CNBC reported.

The 10-year US Treasury yield surged, pressuring risk assets across the board. Bitcoin, which briefly traded above $102,000 on Monday, plunged nearly 5% in the daily chart. At the time of publication, the price was $94, 361, down 2% in the past day.

Among altcoins Altcoins Altcoin is a term that describes any cryptocurrency that isn’t Bitcoin. Since Bitcoin’s inception, countless cryptos have been launched. Many of these have met varying levels of success, though few have risen to rival Bitcoin itself.Ether, XRP, Stellar, Monero, Ada, and Dash are a few examples of the more popular altcoins. There are currently over 5,000 altcoins and this number seems to grow constantly. The leading altcoins as of May 2020 are Ethereum and Ripple.In terms of structure, altcoins c Altcoin is a term that describes any cryptocurrency that isn’t Bitcoin. Since Bitcoin’s inception, countless cryptos have been launched. Many of these have met varying levels of success, though few have risen to rival Bitcoin itself.Ether, XRP, Stellar, Monero, Ada, and Dash are a few examples of the more popular altcoins. There are currently over 5,000 altcoins and this number seems to grow constantly. The leading altcoins as of May 2020 are Ethereum and Ripple.In terms of structure, altcoins c Read this Term, Cardano's ADA, Solana (SOL), and Avalanche (AVAX) led losses. Cardano (ADA) currently trades at $0.921, representing an 8% decline in the past day. SOL, DOGE, and AVAX are down 4%, 5%, and 6%, respectively.

Minutes from the Federal Reserve's recent policy meeting reportedly highlighted rising concerns about inflationary pressures. Additionally, uncertainty surrounding President-elect Donald Trump's potential tariff policies has reportedly added to market jitters.

These factors have traders reevaluating expectations for 2025, with rate cuts potentially fewer than previously anticipated. Historically, rate cuts have buoyed Bitcoin prices, while rate hikes have had the opposite effect. Any signs of delayed cuts could hinder Bitcoin's upward trajectory, keeping traders on edge.

Long-Term Prospects

Bitcoin's long-term prospects remain tied to broader adoption, regulatory clarity, and technological innovation. With 2024 marking significant milestones such as spot ETF approvals and institutional adoption, investors remain cautiously optimistic about Bitcoin's role in portfolios.

Technically, BTC is facing a downward price momentum. The cryptocurrency could find support at $91,829. Currently, it trades below the 50-moving average but remains above the 200-moving average.

On the daily price chart, the Relative Strength Index is at 44, meaning the price is above the oversold zone and could drop further before the trend changes.

For now, market participants will watch for upcoming economic data and Trump's inauguration for cues. While uncertainty looms, Bitcoin's resilience in past downturns offers a glimmer of hope for traders seeking a rebound.