The price of Bitcoin, the world's largest cryptocurrency by market capitalization, has plummeted below $80,000, according to Kraken . It is currently trading at a price of $79,978.15 , as U.S. investors grow more pessimistic about a looming recession following Trump’s warning of a "period of transition" after tariffs.
“Pessimism has prevailed in the U.S. stock market, and concerns about a potential recession in the U.S. are growing. Given these factors, the current consolidation phase [for Bitcoin] could evolve into a medium-term bearish market,” said Ruslan Lienkha, Chief of Markets at YouHodler.
The Dow Jones Industrial Average slid 8% on Monday, while the S&P 500 dropped 1.9% — hitting its lowest price September 2024.
Although Bitcoin has been touted as a potential hedge during market uncertainty, it has become increasingly correlated with the equities market — a trend noted by crypto analysts: “The crypto market is unlikely to thrive if the equity market undergoes a significant correction or downturn,” Lienkha said. “While Bitcoin has the potential to evolve into a hedging asset in the future, it is currently perceived by investors as a high-risk asset, often reacting to broader market sentiment even more strongly than traditional financial markets.”
On Friday, President Donald Trump hosted the country's first White House crypto summit , but that did little to fuel market optimism, especially as he stoked fears over the weekend that the ongoing trade war would not result in “Expectations were running high ahead of Friday’s White House Crypto Summit, but the aftermath was somewhat anticlimactic," said Space ID director Harrison Seletsky. "The market didn’t react with as much excitement."
Meanwhile, the price of Ether, the world's second-largest cryptocurrency, jumped to more than $2,025 while Dogecoin dropped to $0.16 . Other altcoins like Solana, the world's sixth-largest cryptocurrency, dropped by 9% and is currently trading at $122 , while Cardano is now at $0.71 .
Similarly, crypto investment products are seeing record losses, with total outflows now jumping to a staggering $4.75 billion across the past four weeks. U.S. investors withdrew $922 million, with $756 million of exiting funds being in Bitcoin, according to a new CoinShares report .