Bitcoin briefly fell below the $90,000 mark on Monday as investors continued to dump growth-oriented assets such as crypto and technology stocks.
The price of the flagship cryptocurrency fell almost 1% to $93,737.97 to start the week, according to Coin Metrics. Previously, it fell to $89,259.00. Bitcoin is down 9% in the past week.
Bitcoin Continues its Slide as Growth-Oriented Assets Continue to Take a Hit
Ether lost 5.7% on Monday and the broader crypto market, as measured by the CoinDesk 20 Index, fell 3.1%. Actions of Coinbase slipped 2.9%, while MicroStrategy increased by 0.2%. Mara Holdings decreased by 3.8% and Basic scientist fell by 3.1%.
The decline in crypto assets began last week after higher-than-expected payroll numbers caused bond yields to rise and amid concerns over President-elect Donald Trump’s tariff plans, both of which a boost to the dollar while putting pressure on bitcoin and other risky assets.
“The need for liquidity is driven by currency spikes due to strong year-end U.S. economic numbers, the strong stock market rally and other places where money is needed in the short term.” , said James Davies, co-founder. and CEO of crypto trading platform Crypto Valley Exchange. “If we want bitcoin to act as a currency, we have to accept it, and this is one of those times. The US dollar has become stronger and everything else, including bitcoin, is weaker when ‘We measure it in dollars.’
Investor sentiment was optimistic heading into 2025, with markets looking forward to a pro-crypto Congress and White House. Until last week, that hope outweighed any concerns about macroeconomic speed bumps.
Investors are now warning that the first quarter of this year could be more eventful for crypto than expected.
Bitcoin price rose 120% in 2024 but is negative for the new year.
