Bitcoin Drops Below $80,000 Amid Ongoing Crypto Sell-Off
Cryptocurrencies faced a sell-off as risk assets declined, with Bitcoin (BTC) dropping below $80,000, down 3.8% in 24 hours after reaching $84,000 earlier due to a fundraising announcement. Ether (ETH) briefly fell below $2,000, marking a 4% decline.
The CoinDesk 20 Index decreased by 5%, with notable losses in Solana's SOL, Cardano's ADA, Aptos' APT, Avalanche's AVAX, and NEAR, all down between 7% and 10%.
The U.S. equity markets also opened lower, with the Nasdaq dropping over 3% and the S&P 500 declining 2%. Corporate crypto holdings, including Strategy (MSTR) and Coinbase (COIN), lost more than 10%.
Concerns over a potential tariff war and a slowing economy are contributing to negative sentiment. President Trump indicated a possible recession in an interview, stating the economy is in a "transition" phase.
- Increased correlation between BTC and equities expected until new narratives emerge for crypto
- Volatility may rise ahead of key U.S. macro data releases