Bitcoin and Ether Prices Fall Amidst US Market Downturn
Cryptocurrencies experienced a downturn on Tuesday, with Bitcoin and Ether both seeing significant drops. The declines were spurred by a sell-off in US equities, specifically within the technology sector, which overshadowed recent efforts by former US President Donald Trump to support the industry.
Bitcoin saw a drop of over 3 percent during Tuesday morning in Asia, and Ether fell up to 6 percent, reaching $1,756 – a low not seen since October 2023. Both cryptocurrencies managed to regain some of their losses later in the day, data from Bloomberg indicates.
The initial price drops were correlated with a broader downturn in US equities, particularly in technology stocks. The tech-heavy Nasdaq 100 Index saw a plunge of 3.8 percent, marking its worst trading day since October 2022.
Wall Street has become increasingly cautious amid concerns over potential economic disruptions. Trump warned of a possible “little disturbance” resulting from trade tensions with Canada, Mexico, and China. Many strategists and economists on Wall Street are increasing the probability of a US economic downturn.
Joshua Lim, co-head of markets at FalconX Global, commented on the situation, stating, “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.”
Trump had ordered the creation of a US bitcoin reserve and a separate stockpile of other digital tokens before a high-profile summit with industry executives in Washington on March 7. However, these moves, which had been highly anticipated, failed to improve overall market sentiment.
