Bitcoin's recent decline has raised concerns in the crypto market, with the cryptocurrency erasing most of its gains from early 2025. The drop was triggered by fears of rising inflation, surging bond yields, and potential tariff policies under the incoming US administration. The sell-off began due to strong US economic data, which increased concerns about the Federal Reserve maintaining a hawkish stance for a longer period. Altcoins like Cardano, Solana, and Avalanche also experienced losses. Factors such as inflationary pressures and uncertainty surrounding tariff policies have traders reevaluating their expectations for 2025. Bitcoin's long-term prospects rely on factors such as adoption, regulation, and technological innovation. Technical analysis suggests a downward price momentum for Bitcoin, but market participants are cautiously optimistic about its rebound potential, considering its resilience in past downturns.



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