Market sentiment weakens as economic fears overshadow crypto news.
Bitcoin Slumps as Recession Fears Take Hold
Bitcoin extended its losing streak on Monday, falling 4.5% to $78,852. Investor sentiment weakened as concerns over a potential U.S. recession gained traction. President Trump’s recent remarks about a “period of transition” fueled fears of a slowdown, overshadowing optimism from his Bitcoin reserve initiative.
Trump’s Crypto Moves Fail to Lift Market Confidence
Trump’s executive order to establish a national Bitcoin reserve and host a White House crypto summit failed to generate lasting enthusiasm. The reserve will be formed using seized crypto assets, with no new government purchases planned. While Trump’s administration has expressed pro-crypto views, the lack of concrete regulatory plans left markets unimpressed.
Altcoins and Crypto Stocks Follow Bitcoin’s Slide
The broader crypto market mirrored Bitcoin’s downturn, with Ether plunging 8.7% to its lowest level since 2021. XRP, Solana, and Cardano also posted significant losses. Meanwhile, Michael Saylor’s Strategy announced a $21 billion stock offering to fund further Bitcoin purchases, but its stock dropped over 8% on the news.
Uncertainty Dominates Crypto Markets
Crypto traders remain cautious amid economic instability and Trump’s unclear regulatory roadmap. With no immediate government intervention to boost demand, Bitcoin and altcoins could see further volatility in the coming weeks. Investors are watching for stronger policy signals that could shape the market’s direction.
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