Experts reveal the reasons for the sharp drop in bitcoin on April 25

On April 25, the flagship of the cryptocurrency market BTC $62,283.94 Bitcoin -1.92% Market capitalization $1.23 trillion VOL. 24 hours $1.25 billion momentarily fell below $ 63,000. According to experts, this was the global market’s reaction to negative economic data from the United States.

One of the most important indicators of economic development is the US GDP, which grew by 1.6% in the first quarter of this year. This figure was significantly lower than the forecast. At the same time, inflationary pressures remain significant. This puts the US Federal System in a rather difficult position.

On the one hand, inflation forces the Fed to keep the refinancing rate high. On the other hand, the local weakness of the national economy narrows the room for maneuver. Bitcoin, like the US stock market, reacted to this event with a sharp drop.

At the same time, the global community is actively monitoring the geopolitical situation in the Middle East. In such circumstances, investors focus on risk protection. Against this backdrop, they are investing more actively in traditional financial instruments.

The most commonly used instruments are US government bonds, the dollar and precious metals. As for high-risk assets, in times of geopolitical instability, such instruments fall out of investors' focus.