Why Bitcoin, Ethereum and Dogecoin have crashed today

THE cryptography market was in full panic mode Tuesday when the evaluations dropped two figures almost at all levels. To be fair, the movement has little to do with the crypto itself; The values ​​are down due to a dreaded trade war and the confidence of consumers.

Bitcoin (Crypto: BTC) was the largest leader, down 8.2% in the last 24 hours at 11:45 a.m. Ethereum (Crypto: ETH) is down 9.2% during this period, and Mastiff (Crypto: Doge) is disabled 9.1%. The decline seems to have slowed down, but it is not clear if there will be a recovery in trade today.

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Crypto still depends on the economy

The hard truth revealed today is that the price of cryptography is linked to the economy and strongly correlated with the performance of growth actions. When investors thought that the future was going to be much brighter, in the fall of 2024, the cryptography market rebounded above, but the reality is a little less optimistic.

We have learned today that the consumer confidence index maintained by the Conference Board, a non-profit reflection group, went from 105.3 in January to 98.3 this month. It is the biggest decline since August 2021, and a reading of 80 indicates a potential recession. A measure of short -term expectations for income, businesses and the labor market dropped from 9.3 points to 72.9.

Consumers and investors are partly worried about import prices from Canada and Mexico, which will obviously start in March after a month. Reciprocal prices, which reflect prices on American products collected by other countries, should also start in April.

The market as a whole has not plunged to news, but growth actions are decreasing.

The speculative pop of the crypto wears out

The current crypto race began in November after the elections, and although there have been changes to the application of Securities and Exchange Commission, there were no wholesale changes in cryptographic laws in the United States that so many investors were waiting.

In addition to that, the market may see that the value of more use of blockchain may not accumulate in native crypto tokens like Bitcoin or Ethereum, and memes like Dogecoin are discolving. What earns a real use is tokens like stablecoins that can be cheaper and easier to use than traditional financial tools. And if this is where the use of blockchain disrupts the financial ecosystem, there will be more pain to come for many cryptocurrencies.

Where are we going from here?

The momentum that has pushed higher cryptographic values ​​in the past six months is discoloration, and the American economy seems to be close to a recession. If this continues, it will not be surprising to see the cryptocurrencies continue to fall, especially since many of the leverage of the industry is carried away.

I think the future is more in question for cryptocurrencies than many investors do not think and withdraw the risk of the table is the right blow at the moment. If consumers are not confident in the economy, it is unlikely that they are confident enough to buy crypto.

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