The crypto market faced heavy selling pressure on Tuesday, with Bitcoin (BTC) dropping over 7% to $87,608, marking its lowest level in three months. The sharp decline weighed on crypto-related stocks, dragging down major industry players.
Crypto Stocks Take a Hit
\ud83d\udcc9 Key Declines:
- MicroStrategy (NASDAQ:MSTR) – Down 11%
- Coinbase (NASDAQ:COIN) – Down 8%
- Riot Platforms (NASDAQ:RIOT) – Down 9%
- Applied Digital Corp. – Down 13%
Other major cryptocurrencies also declined:
- Ethereum (ETH) fell 8%
- XRP plunged 9% to $2.22
- Solana (SOL) dropped 6%
What’s Driving the Crypto Market Sell-Off?
\ud83d\udd3b Risk-Off Sentiment in Traditional Markets
- The Nasdaq Composite fell 1.3%, extending a three-day losing streak and adding to a 4% decline since February 18.
- A stronger Japanese yen (JPY)—now at 149.76 per USD—has raised expectations of a Bank of Japan (BOJ) rate hike, reducing appetite for risk assets like Bitcoin.
\ud83d\udcca Macroeconomic and Geopolitical Uncertainty
- Bitcoin had previously rallied after Donald Trump’s election victory, driven by hopes of a pro-crypto administration.
- However, traders are now shifting focus to global economic conditions, leading to a correlation between crypto markets and U.S. equities.
Outlook: More Volatility Ahead?
\ud83d\udca1 Key Watch Points:
- BOJ policy updates – Further rate hike expectations could strengthen the yen, putting more pressure on risk assets.
- U.S. equity market trends – Continued tech stock weakness could further impact Bitcoin and altcoins.
- Regulatory developments – With crypto ETFs gaining traction, institutional flows could stabilize prices in the medium term.
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