Cryptocurrencies Weaken: Bitcoin Falls to Pre-Trump Levels
The cryptocurrency market is experiencing a sharp downturn. Bitcoin (BTC) continues its decline, hovering just above $81,000 on Binance after briefly touching $76,000—levels unseen since Donald Trump’s electoral victory last November.
In this context, Ethereum has also plunged over 8%, breaking below the $2,000 mark to trade at $1,905, a level last seen in late 2023.
According to IntoTheBlock, a platform specializing in cryptocurrency analysis, crypto exchanges reported ETH sell-offs totaling $1.8 billion last week—the highest outflow since December 2022, when the market was shaken by the collapse of FTX. Altcoins are also struggling, with losses of up to 4.7%, led by Bitcoin Cash, Chainlink (-4.1%), and Dogecoin (-3.7%).
Rising Correlation with Wall Street
These declines follow another rough session on Wall Street, where the Dow Jones and S&P 500 fell over 2%, and the tech-heavy Nasdaq plunged 4%. Cryptocurrencies continue to mirror the bearish trend in U.S. equities, maintaining a strong correlation with the Nasdaq.
This movement has intensified in recent days due to unfavorable macroeconomic data and uncertainty surrounding President Donald Trump’s policies. His administration has fueled market volatility with frequent shifts in trade policy and ambiguous statements. Concerns over a potential U.S. recession have grown, and Trump has not entirely ruled out the possibility. In a weekend interview with Fox News, he avoided providing a clear stance on economic stability, stating only that the country is undergoing a “transition period.”
While his Commerce Secretary, Howard Lutnick, attempted to reassure markets, the damage was done, further deepening risk aversion.
CryptoMarket Outlook
Unless the crypto market finds a new narrative, its correlation with equities will likely remain high in the short term. Both asset classes are hovering near recent lows, and with ongoing trade uncertainty, volatility could rise further as new economic data emerges in the U.S.
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