Why is Bitcoin Crashing and What Crypto To Buy Now in The Panic Dip?

Retail investors are flocking to buy the dip after the latest Bitcoin Crash, but why is Bitcoin crashing and what crypto to buy now?

The crypto market is bleeding. Amid this turbulence, the total market cap is shrinking, and there is panic among investors and traders. After the flash crash of Bitcoin, Ethereum, and even BNB on January 7, there is fear that prices will continue to tank in the second half of the week.

So far, Bitcoin Price Volume in 24h Price 7d is struggling to break $96,000, sliding from over $102,000 recorded earlier this week. Meanwhile, Ethereum and Solana remain below $3,400 and $220, respectively. Meme coins, crypto AI, and even RWA tokens have not been spared either.

They are in a freefall. The world’s most valuable meme coin, Dogecoin, is dumping, losing over 11% in 24 hours.

(Source)

What’s Behind the Bitcoin And Crypto Drop?

Looking at market and macro data, there are several accelerants behind the downturn of the past 24 hours.

Rising bond yields in the United States, for example, mean investors are swapping the risks and volatility associated with crypto for the stability of treasuries. According to Bloomberg data, the 10-year note coupon rose to 4.25% in the past day. There has also been a noticeable uptick in the 5-year and 30-year yields.  

(Source)

Eyes are also on the December Federal Reserve minutes. Although rates were slashed, the central bank hinted at a possible slowdown in easing in 2025.

Higher or flat interest rates could impact Bitcoin and crypto assets. Often, a dovish regime translates to cheaper borrowing rates, higher inflation, and a more accommodative environment for investors to find exposure in risk assets like Bitcoin.

Solana, Fantom, and Wall Street Pepe: Top Altcoins To Watch in Q1 2025?

While the sell-off is clear, the market structure favors bulls in the short and medium term. All that’s needed is for Bitcoin to reclaim $100,000, reversing its losses on January 7. If this happens, investors could explore other high-potential altcoins with 10X possibilities.

The top 3 altcoins to watch in Q1 2025 are:

Solana (SOL)

Solana Price Volume in 24h Price 7d is the home of meme coins and one of the most vibrant networks. Although it is in the top 10, the coin can easily 5X in 2025 thanks partly to its unique value proposition and relentless development.

This year, developers will improve their infrastructure via Firedancer. At the same time, implementations to make the blockchain quantum-resistant are bullish for SOL. Further plans to introduce a new hashing system will make Solana attractive for node operators.

If SOL holds, rejecting losses below $180, the coin might recover strongly, easing past $265 to fresh all-time highs in the coming months.

(SOLUSDT)

Fantom (FTM)

In the past few weeks, Fantom’s Price Volume in 24h Price 7d blockchain activity has surged, as evidenced by the number of block transactions. According to IntoTheBlock, over $303 million of block transactions above $100,000 were registered in the last seven days. Meanwhile, sentiment remains bullish.

(Source)

Although prices have more than halved after rallying to over $1.70 in December 2024, confidence is high. A break above $0.85 might ignite demand, lifting the token towards 2024 highs in a buy-trend continuation.

(FTMUSDT)

The transition from FTM to S tokens and multiple exchanges are fueling the wave of demand. This update was a huge milestone for the broader Fantom ecosystem.

Exchanges that will list $S this month. Can you guess the last two?

— @Binance
— @OKX
— @Bybit_Official
— @KuCoinCom
— @CryptoCom
— @BitgetGlobal
— @Gate_io
— @HTX_Global
— @BitrueOfficial
— @BitMartExchange
— @WhiteBit
— @LBank_Exchange
— ?
— ? pic.twitter.com/x3iKDH484u

— Sonic Labs (@SonicLabs) January 8, 2025

Wall Street Pepe (WEPE)

Wall Street Pepe is emerging to be a standout meme coin. Roughly one month after launching, over $43.8 million has been raised. The momentum is steadily picking up after the project raised an impressive $100,000 five hours after the start of the WEPE ICO.  

The project’s ability to weave tangible utility with meme culture is drawing attention. WEPE holders will receive trading signals and participate in weekly competitions.

Additionally, 12% of the 200 billion WEPE total supply has been allocated to staking. Stakers currently receive a 29% APY. Over 27.6 billion WEPE has been staked by presale investors.

WEPE is currently trading for just $0.00036644 in the current presale stage. Interested investors should act quickly before prices increase in the next phase. Once the presale ends in February, WEPE, thanks to its vibrant community, can quickly fly.

Keep in touch with Wall Street Pepe project news and developments through its vibrant community on X (formerly Twitter) and Telegram.

VISIT Wall Street Pepe HERE

EXPLORE: Bitcoin Txs Hit $19T in 2024: Top Web3 Wallet $BEST Raises $6.5M Ahead of Seismic Year For Crypto

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Disclaimer

Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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