Bitcoin, Ether Decline Amid Stock Market Concerns
Cryptocurrencies experienced declines on Tuesday, influenced by a sell-off in US equities, particularly within the technology sector. This downturn overshadowed recent efforts by US President Donald Trump to support the industry.
Bitcoin saw a drop of over 3 percent on Tuesday morning in Asia. Ether, the second-largest cryptocurrency, fell as much as 6 percent, reaching $1,756, its lowest point since October 2023. Data from Bloomberg indicates that both tokens later recovered some of their losses.
The initial cryptocurrency declines coincided with a broader sell-off in the US equities market. The technology-heavy Nasdaq 100 Index experienced a significant drop of 3.8 percent, marking its worst performance since October 2022.
Wall Street’s unease stems from President Trump’s warning that Americans might experience a “little disturbance” due to potential trade conflicts with Canada, Mexico, and China. Across Wall Street, strategists and economists have increased their estimates for a potential US economic downturn.
Joshua Lim, FalconX Global’s co-head of markets, commented on the situation: “Now that the industry has its strategic bitcoin reserve executive order, crypto has one fewer positive forward catalyst to price in, and we’re left at the mercy of macro risk appetites.”
Prior to a high-profile crypto summit on March 7 in Washington, Trump had ordered the establishment of a US bitcoin reserve and a separate stockpile of other tokens, but these much-discussed moves had little effect on market sentiment.
