Cryptocurrency Market Update

Cryptocurrencies extended a sell-off on Monday as risk assets, including equities, declined during the early U.S. hours.

Following a bounce to around $84,000 earlier in the day, possibly buoyed by Strategy’s $21 billion fundraising plan, Bitcoin (BTC) slid below $80,000, down 3.8% over 24 hours. The Ethereum blockchain’s ether (ETH) briefly dropped below $2,000, trading near its weakest price since November 2023, down around 4%.

The broad-market CoinDesk 20 Index fell 5%, with Solana’s SOL, Cardano’s ADA, Aptos’ APT, Avalanche’s AVAX, and NEAR losing between 7% and 10%.

The downturn in crypto markets coincided with U.S. equity indexes opening the week sharply lower, affecting market sentiment. The Nasdaq tumbled over 3% in early trading, while the S&P 500 declined by 2%.

Crypto equities were similarly affected, with Strategy (MSTR), the largest corporate BTC holder, and crypto exchange Coinbase (COIN) both losing more than 10%.

After the digital asset summit at the White House and President Donald Trump’s Bitcoin reserve executive order, the crypto markets seem to lack near-term positive catalysts and are increasingly burdened by concerns regarding a tariff war and a slowing economy.

Trump stated in a Fox News interview that the economy is in a “transition” phase and did not rule out a recession this year.

According to hedge fund QCP, “Until crypto finds a new narrative, we’re likely to see increased correlation between BTC and equities in the near term. Both risk assets are currently trading near their recent lows, and with tariff risks looming, volatility could rise ahead of key U.S. macro data releases.”,