On Monday morning, Bitcoin’s price plummeted beneath $80,000 as financial markets reacted to persistent inflation worries and the looming threat of a U.S. recession, heightened by President Trump’s remarks over the weekend.
During a Sunday interview with Fox News, when asked if he foresees a recession this year, Trump did not dismiss the possibility.
“I’m hesitant to make predictions like that,” he stated, emphasizing that the economy will undergo a “transition period” as it adapts to his significant tariffs on Canada, Mexico, and China. Trump’s actions regarding tariffs, including adjustments and delays, have unsettled markets for weeks.
Early Monday, Bitcoin dropped to a low of $79,553 but saw a slight recovery to $79,785 at the time of this report. The dominant cryptocurrency is down nearly 5% for the day and has fallen 14% over the week, driven by tariff developments and speculation concerning Trump’s plans for a strategic Bitcoin reserve.
Ethereum also experienced a 5% decline, currently priced at $2,013 after nearly dipping below the $2,000 threshold late Sunday. ETH has not been under $2,000 since November 2023.
Other significant cryptocurrencies faced steeper declines in the past 24 hours, including Cardano (ADA) down 10% to $0.69, Solana (SOL) decreased by 9% to $121, and Dogecoin (DOGE) falling 8% to $0.166.
Stock markets are also showing losses this Monday, with the Nasdaq dropping over 3% and the S&P 500 falling by 1.8%. Traders are exercising caution ahead of vital economic reports anticipated later this week, including updates on the Producer Price Index (PPI) and Consumer Price Index (CPI), which will provide insights on inflation control.
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