The sell-off marks a stark shift from last week, when digital assets remained relatively stable despite broader market jitters. But with fears of a deepening global trade war mounting, crypto assets joined equities in a broad retreat.
Bitcoin’s dip on Monday dragged the token to its lowest level of 2025, a price point not seen since the aftermath of former President Donald Trump’s Election Day win last year.
While the Republican leader has touted his support for the crypto industry — even launching his own meme coin before taking office — prices have steadily declined since his inauguration earlier this year.
Trump had previously taken credit for bitcoin’s rally past $100,000 in December. But since then, a steady slide has eroded much of those gains. Notably, Trump’s own meme coin — once valued above $70 — plunged below $8 on Monday morning.
Other digital assets were not spared. Ether traded around $1,500, down over 50% from February highs.
Garrick Hileman, a noted cryptocurrency analyst, said Monday’s losses underscore a broader issue with crypto’s reputation as a hedge against traditional market stress.
“Bitcoin still trades more like a speculative tech stock than a safe-haven asset,” Hileman told reporters. “That narrative of it being ‘digital gold’ just isn’t holding up under pressure.”
Crypto-focused stocks also took a hit. Shares of publicly traded companies tied to the industry — including Coinbase and Robinhood — slid in early trading.
Coinbase dropped around 5%, while Robinhood lost up to 14% after Barclays cut its price target, warning that the crypto downturn could weigh heavily on transaction revenues this quarter. Both pared some losses in the afternoon session.
Meanwhile, Strategy, a company that holds billions of dollars worth of bitcoin on its balance sheet, declined more than 10%, giving back much of its recent gains.
Though crypto firms are not directly affected by the new levies, the broader market uncertainty is weighing heavily on the sector.
