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Bitcoin briefly fell below the $90,000 mark on Monday, extending its slide as investors continued to dump growth-oriented assets like crypto and tech stocks.
The price of the leading cryptocurrency was last lower by 3% at $91,358.66 to start the week, according to Coin Metrics. First, it dropped down to $89,259.00. Bitcoin is down 10% in the past week.
Bitcoin extends its slide as growth-oriented assets continue to hit
Ether lost 7% Monday and the broader crypto market, as measured by the CoinDesk 20 the index fell more than 5%. Actions of Coinbase and Microstrategy slid 4% and 3%, respectively. Mara Holdings down 4% and Scientific Core withdrawn by 2%.
The decline in crypto assets began last week after stronger-than-expected payroll numbers caused a peak in bond yields and in the middle concerns about President-elect Donald Trump’s tariff plans – both of which have given the dollar a boost while pressuring bitcoin and other risk assets.
“The need for liquidity is caused by FX spikes due to the strong number of the US economy at the end of the year, the strong stock market rally, and there are other places where money is needed in the short term,” said James Davies, co-founder. and CEO of crypto trading platform Crypto Valley Exchange. “If we want bitcoin to act as a currency, we need to accept it when it does, and this is one of those times. The US dollar has become stronger and everything else, including bitcoin, is more weak when measured in dollars.”
Investor sentiment was optimistic heading into 2025, with markets expecting a pro-crypto Congress and White House. This hope outweighed any concerns about macroeconomic speedbumps, until last week.
Investors are now warning that the first quarter of this year could be more turbulent for crypto than was anticipated.
The price of Bitcoin grew 120% in 2024, but fell by 3% until the new year.
