Bitcoin It briefly fell below the $90,000 level on Monday, extending its decline as investors continued to unload growth-oriented assets such as cryptocurrencies and technology stocks.
The price of the major cryptocurrency was last down 3% at $91,358.66 to start the week, according to Coin Metrics. Earlier, it fell to a low of $89,259.00. Bitcoin is down 10% in the past week.
Bitcoin extends its decline as growth-oriented assets continue to take a beating
ether Bitcoin lost 7% on Monday and the broader cryptocurrency market, as measured by the CoinDesk 20 Index, fell more than 5%. shares Coinbase and Accurate strategy It decreased by 4% and 3%, respectively. Mara Holding decreased by 4% and Basic scientific decreased by 2%
The decline in crypto assets began last week after stronger-than-expected payroll numbers sent bond yields higher and amid concerns about President-elect Donald Trump's tariff plans – both of which gave a boost to the dollar while putting pressure on Bitcoin and other risk assets.
“The need for liquidity is caused by rising currency exchange rates due to strong numbers for the US economy at the end of the year, a strong stock market rally, and there are other places where funds are needed in the short term,” said James Davies, co-founder. And CEO of the cryptocurrency trading platform Crypto Valley Exchange. “If we want bitcoin to function as a currency, we have to accept it when it does, and this is one of those times. The US dollar has gotten stronger, as everything else including bitcoin has gotten weaker when measured in dollars.”
Investor sentiment has been optimistic heading into 2025, as markets look forward to a pro-crypto Congress and White House. This hope outweighed any concern about macroeconomic speed bumps, until last week.
Investors are now warning that the first quarter of this year could be more turbulent for cryptocurrencies than previously expected.
Bitcoin's price rose 120% in 2024 but is down 3% so far in the new year.
