The cryptocurrency market slid during trading on Monday into a spiral of sharp losses, following a brief period of relative stability, joining the global wave of selling that swept across various financial markets amid rising economic fears and controversial political statements.
Bitcoin, the largest cryptocurrency by market value, recorded a significant decline on Monday morning, dropping below the $75,000 level before slightly recovering to around $79,000. This is the lowest level since Donald Trump won the last U.S. elections, a period during which cryptocurrencies experienced a strong upward surge.
Trump was a strong supporter of the digital currency market and claimed in previous statements that Bitcoin would surpass the $100,000 barrier last December. However, the currency has entered a gradual decline since he took office earlier this year, driven by concerns over his economic outlook, particularly regarding new tariffs, leading to severe disruptions in global markets.
Despite supporters describing Bitcoin as "digital gold" that can be relied upon as a safe haven during times of tension, the recent drop has cast doubt on the sustainability of this hypothesis, with increasing correlations between cryptocurrencies and high-risk stocks.
Meanwhile, other digital currencies witnessed even sharper declines, with the price of Ether dropping to around $1,500, losing nearly half its value since Eric Trump, the president's son, urged his followers to buy it last February. Additionally, the digital currency launched by Trump before he entered the White House— which had peaked at over $70— fell to below $8 on Monday morning.
The decline extended to stocks of companies linked to the digital asset sector, which recorded clear losses at the start of the week amid ongoing uncertainty about the future of cryptocurrencies in light of rapid political and economic changes.
