- Bitcoin fell below $75,000 on Monday, joining broader market sell-offs after previously holding stable during last week’s global market turbulence.
- Cryptocurrencies, including Ether and Trump’s meme coin, have seen significant declines despite previous claims that they serve as hedges against market volatility.
- Bitcoin has been declining steadily since President Trump took office, contradicting the asset’s reputation as “digital Gold” that can protect against market instability.
Cryptocurrencies joined the global market downturn on Monday morning, with Bitcoin dipping below $75,000 before experiencing a slight recovery. This decline comes after crypto assets had initially remained relatively stable during last week’s widespread market turbulence, challenging the notion that digital currencies can serve as reliable safe havens during periods of economic uncertainty.
Bitcoin’s current price levels haven’t been seen since shortly after President Donald Trump‘s election victory, which had previously triggered a substantial rally in cryptocurrency prices. Despite Trump being a major promoter of the crypto industry and having previously taken credit when Bitcoin surpassed $100,000 in December, the world’s most popular cryptocurrency has been on a steady downward trajectory since he assumed office earlier this year.
Bitcoin’s Status as “Digital Gold” Questioned
The recent price decline challenges Bitcoin’s reputation as a hedge against market volatility. Garrick Hileman, an independent cryptocurrency analyst, addressed this discrepancy, stating: “It’s just not there today. (Bitcoin) trades like a risky tech stock.” This assessment contradicts the common assertion among Bitcoin advocates that the cryptocurrency functions as a digital equivalent to gold, typically considered a safe investment during market instability.
Other major cryptocurrencies experienced even steeper percentage drops on Monday morning. Ether, the second-largest cryptocurrency by market capitalization, traded at approximately $1,500, representing a loss of about half its value since early February when Eric Trump encouraged his followers to invest in the digital asset via social media.
Trump-Associated Tokens and Crypto Stocks Also Affected
President Trump’s personal meme coin, which he launched just before taking office and once reached a peak value exceeding $70, plummeted to below $8 on Monday morning. This represents a dramatic decline for the token that had been closely associated with the president’s support for cryptocurrency markets.
The downturn extended beyond digital assets to affect traditional markets as well. Stock prices of cryptocurrency-focused companies showed noticeable declines during early trading on Monday, further highlighting the interconnected nature of digital and traditional financial markets during periods of volatility. This movement comes as President Trump’s recent tariff announcements have also led to significant stock market sell-offs more broadly.
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