Bitcoin experienced a sharp decline as risk-off sentiment swept through global markets, leading to a broad selloff in risk assets. The world’s largest cryptocurrency fell over 8% in the past two days, dropping to just above $88,000 (€83,626) during Wednesday’s Asian session—its lowest level since November 15.
Since peaking around Trump’s inauguration on January 20, Bitcoin has slumped nearly 20%. Other major cryptocurrencies, including Ethereum, Cardano, and Solana, have also declined by more than 10% over the same period.
Market uncertainty has been driven by weakening US economic data, Trump’s tariff threats, and political developments. Additionally, a major crypto hack targeting the Dubai-based exchange Bybit has raised concerns over blockchain security. Investors are now looking for a fresh catalyst to reignite enthusiasm in the sector.
The US technology sector, which often moves in tandem with cryptocurrencies, was the worst performer on Wall Street. Tesla shares tumbled more than 8% on Tuesday after reports showed its car sales nearly halved in Europe last month, dragging down the broader sector.
Nvidia’s earnings report, due later today, will be closely watched. Meanwhile, US consumer confidence saw its biggest drop since August 2021, reflecting economic uncertainty amid Trump’s new tariffs on Mexico and Canada. Signs of rising inflation and a hawkish shift from the Federal Reserve have also dampened market sentiment.
“On the surface, this is about weak data and the uncertainty stemming from the Trump administration’s policy agenda and how that may impact economic activity,” wrote Kyle Rodd, a senior market analyst at Compital.com Australia.
Global markets faced widespread losses on Tuesday, with equities extending declines, oil prices tumbling, gold retreating, and the US dollar weakening. Meanwhile, government bond yields fell sharply, with the US 10-year Treasury yield reaching its lowest level since mid-December.
