Bitcoin and other cryptocurrencies fell sharply on Monday as renewed trade tensions and a steep decline in technology stocks spooked investors.
Bitcoin dropped 5% to $91,000—its lowest since February 3—while Ethereum plunged 11% to $2,500, according to CoinGecko. The broader selloff coincided with a decline in U.S. equities, with the Nasdaq Composite losing over 1% amid concerns about artificial intelligence demand and upcoming earnings from chipmaker Nvidia.
Market sentiment worsened after former U.S. President Donald Trump confirmed new tariffs on Canadian and Mexican imports, stoking fears of inflation and slower economic growth. Some analysts argue the crypto slump was also driven by a broader “risk-off” mood following a $1.4 billion hack at Bybit.
More than $686 million in leveraged crypto positions were liquidated in the past 24 hours, per Coinglass, exacerbating the downturn. However, some experts believe the shakeout could improve market stability by reducing excess leverage.
With regulatory developments on the horizon and investor focus shifting to the Federal Reserve’s next policy move, analysts suggest Bitcoin could still rebound in the near term.
Credit: Decrypt (Text Excluding Headline)
