Why Bitcoin, Ethereum and Dogecoin have crashed and rebounded today

The cryptography market has entered a fall during the 24 hours before strong recovery on Friday at noon when investors are starting to wonder how healthy the economy is and if the high assessments for risky assets are justified. Although it was sold as a coverage against inflation and the economy, the crypto has negotiated as a growth stock, and it became a front wind in 2025.

From 2 p.m. he, Bitcoin (Crypto: BTC) is stable in the previous 24 hours, but it dropped earlier by 6% and broke below $ 80,000; Ethereum (Crypto: ETH) is in case 4% but dropped to 9.7% at noon; And Mastiff (Crypto: Doge) fell up to 12.5% ​​before recovering at a loss of 3.9%. It is before the weekend, when liquidity generally decreases, which could lead to greater commercial volatility.

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Economic reality collided with speculation

The crypto race in the past four months has been motivated by speculation that the new presidential administration would lead to more favorable policies. This happened, but it did not translate into higher crypto assessments because the speculating buyers on the move have already entered the market.

Most cryptocurrencies, including bitcoin, are close or lower than they were when the American elections took place, so that the purchase pressure has passed. What investors are focused on today is a report from the Commerce Department, which showed a 2.6% increase in prices compared to a year ago, but a drop in consumption expenses of 0.2% despite a 0.9% increase in income.

Consumers spend less in vehicles and other large items while the cost of food and housing eats in budgets. Since consumers stimulate the economy, it is a clear concern for investors.

Why the crypto is struck by economic uncertainty

You may think the cryptography market is isolated from the global economy, but this is not the case. Cryptocurrencies are negotiated a bit like growth actions, which have had a great race in recent months.

But prices on imports from Canada, Mexico and China can come into force next week, and consumers are already withdrawing their expenses. This could result in worsening economic conditions and less money for risky assets such as cryptocurrencies.

Curiously, the economic decline can hit Crypto before it reaches companies that will see lower income.

Uncertainty will not help crypto

In 2025, the idea was that an improved political environment would be good for cryptocurrencies. And although the political environment has improved, the cryptography market has not responded positively. This is largely because there was not enough time for innovation to flourish on the blockchain.

Speculation increases prices, but it could take years to truly innovative businesses to settle. We can see a part of this development occurring, but innovation takes place with stablecoins, not traditional cryptocurrencies, such as the means of exchange. This can mean that less money flows in Bitcoin and Corners Like Dogecoin.

To make things worse, Ethereum seems to have fallen into disgrace because the faster and cheaper blockchains win by adoption. Add all this and uncertainty is the norm, and this can push the cryptocurrencies below in the predictable future.

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