Bitcoin Slumps as Macro Uncertainty and AI Stocks Plunge, Fueling Risk-Off Sentiment
Bitcoin and other cryptocurrencies saw sharp declines on Monday as investors reacted to renewed trade tensions and weakness in tech stocks, particularly artificial intelligence (AI). The situation added to the risk-off sentiment across the market.
Bitcoin Falls to Three-Week Low
Bitcoin fell 5% to $91,000 in late afternoon U.S. trading, marking its lowest level since Feb. 3, according to data from CoinGecko. Ethereum was not immune to the sell-off, falling as much as 11% to $2,500.
The decline coincided with weakness in U.S. stocks, with the Nasdaq Composite down more than 1%. Investors are worried about demand for artificial intelligence products as well as expectations for chip giant Nvidia's upcoming earnings.
Weakness in Tech Stocks and Tariffs Exacerbate the Situation
While the S&P 500 posted its third straight decline, the Dow Jones Industrial Average edged up slightly. However, the market remained cautious as President Donald Trump confirmed plans to impose tariffs on imports from Canada and Mexico would go ahead, raising concerns about inflation and slowing economic growth.
In addition, the recent Bybit hack also weighed on investor sentiment, as traders sought to minimize risk amid volatile markets.
Conclusion
Risk-off sentiment has spread across the market as macro factors such as tariffs, weak AI stocks and the Bybit hack pushed Bitcoin to a three-week low. With concerns surrounding global economic growth and instability in the tech industries, the cryptocurrency market is facing no small amount of challenges.