 |
| Bitcoin drops below $80,000 |
Bitcoin Drops Delow $ 80,000 as Crypto Sell-off Continues
The cryptocurrency market is now lacking near-term positive catalysts and is being influenced by macroeconomic headwinds like as a potential tariff war and a slowing economy.
As risk assets, such as stocks, plummeted in the early hours of the U.S., cryptocurrencies continued their sell-off on Monday. Bitcoin (BTC) fell below $80,000, down 3.8% in a day, after rising to about $84,000 earlier in the day, possibly helped by Strategy's $21 billion fundraising plan. Ether (ETH) on the Ethereum network dropped almost 4% to trade close to its lowest price since November 2023, briefly falling below $2,000.
Crypto equities also felt the heat. Strategy (MSTR), the largest corporate BTC holder, and crypto exchange Coinbase (COIN) lost more than 10%.
With the digital asset summit at the White House and President Donald Trump's Bitcoin reserve executive order already behind us, crypto markets have run out of near-term positive catalysts and are increasingly weighed down by concerns about a tariff war and a slowing economy.
In an interview with Fox News on Sunday, Trump stated that the economy is in a "transition" phase, but he would not rule out a recession this year. "Until crypto finds a new narrative, we're likely to see an increased correlation between BTC and equities in the near term," stated hedge fund QCP during a broadcast on Telegram. "Both risk assets are currently trading near their recent lows, and with tariff risks still looming, volatility could pick up heading into key U.S. macro data releases."