Cryptocurrencies extended their sell-off on Monday, mirroring the negative sentiment in risk assets, including equities, during the early hours of the U.S. market. After a bounce to approximately $84,000, likely buoyed by Strategy’s $21 billion fundraising plan, Bitcoin (BTC) fell below the $80,000 mark, down 3.8% over the last 24 hours. Meanwhile, on the Ethereum blockchain, Ether (ETH) briefly slipped below $2,000, trading near its lowest price since November 2023, marking a decline of around 4%.
The broad-market CoinDesk 20 Index experienced a drop of 5%, with notable results as Solana’s SOL, Cardano’s ADA, Aptos’ APT, Avalanche’s AVAX, and NEAR each fell between 7% and 10%.
This downward momentum in cryptocurrency markets coincided with a sharp decline in U.S. equity indexes, further dampening investor sentiment. The Nasdaq composite tumbled over 3% during the opening hours, while the S&P 500 index reported a decline of 2%.
Crypto equities were also affected by the overall market downturn, with Strategy (MSTR), the largest corporate holder of Bitcoin, and crypto exchange Coinbase (COIN) both losing more than 10% of their value.
With key events like the digital asset summit at the White House and President Donald Trump’s executive order regarding Bitcoin reserves now behind us, the cryptocurrency market finds itself lacking in substantial positive catalysts. Additionally, concerns surrounding a potential tariff war and a slowing economy are weighing heavily on investor sentiment.
In a recent interview with Fox News, President Trump characterized the economy as being in a ‘transition’ phase, and he did not rule out the possibility of a recession this year. The uncertainty in the economic landscape is contributing to the prevailing volatility in the cryptocurrency sector.
“Until crypto finds a new narrative, we are likely to see an increased correlation between BTC and equities in the near term,” observed hedge fund QCP in a Telegram broadcast. “Both risk assets are currently trading near their recent lows, and with tariff risks looming, volatility could escalate as we approach key macroeconomic data releases in the U.S.”
