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On Monday, Bitcoin’s value dipped below the $90,000 threshold, continuing a downward trend initiated over the weekend as investors showed increased aversion to technology stocks.
The leading cryptocurrency experienced a decrease of 3%, landing at $91,358.66, according to data from Coin Metrics. Over the past week, Bitcoin’s value has decreased by 11%.
The overall market sentiment is reflected in Ether, which witnessed a 7% drop on Monday, and the wider cryptocurrency market, represented by the CoinDesk 20 index, fell by more than 6%. In tandem with these declines, major cryptocurrency-related stocks also suffered, with Coinbase and MicroStrategy reducing by 4% and 3%, respectively. Other firms, such as Marathon Holdings and Core Scientific, saw declines of 4% and 2%.
The downturn for crypto assets began last week, triggered by unexpectedly strong payroll data that resulted in a rise in bond yields. This was compounded by apprehension regarding the tariff strategies of President-elect Donald Trump, leading to a surge in the dollar’s strength and exerting downward pressure on Bitcoin and similar risk assets.
As 2025 approached, investor confidence had been high, buoyed by expectations of supportive pro-crypto policies from Congress and the incoming administration. However, these reassurances have started to wane in light of recent economic developments, indicating potential challenges for the cryptocurrency market in the near term.
Looking ahead, investors caution that the first quarter of the new year may present greater volatility for cryptocurrencies, contrary to earlier forecasts.
Despite a remarkable 120% increase in Bitcoin’s price throughout 2024, the asset has faced a 3% decline at the start of 2025.
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