Bitcoin Slumps Amid Recession Fears; Trump's Crypto Initiatives Disappoint
Bitcoin Slumps Amid Recession Fears; Trump's Crypto Initiatives Disappoint
Bitcoin tumbled 4.5% to $78,852.8 on Monday, extending losses as recession fears intensified. The decline mirrored broader risk asset weakness, with investors unnerved by U.S. President Donald Trump's recent comments on a potential economic slowdown.
Recession Fears Overshadow Crypto Optimism
Sentiment soured further after Trump hinted at a possible U.S. recession in 2023 during a Fox News interview. Despite his administration's efforts to bolster crypto confidence—such as forming a national Bitcoin reserve and hosting a White House crypto summit—the initiatives failed to offset macroeconomic concerns.
The Bitcoin reserve, comprising seized crypto assets, does not involve new government purchases, limiting its market impact. Crypto proponents expressed disappointment, as the move lacked the aggressive measures many had hoped for.
Strategy Launches $21 Billion Bitcoin Buying Plan
Michael Saylor’s Strategy announced a $21 billion at-the-market (ATM) offering to fund additional Bitcoin purchases. Despite being the largest corporate Bitcoin holder with nearly 500,000 tokens, the company’s shares dropped over 8% following the announcement.
Broader Crypto Market Retreats
Altcoins followed Bitcoin’s decline, with Ether falling 8.7% to its weakest level since late 2021. XRP, Solana, and Cardano also saw significant losses, while meme tokens like Dogecoin and $TRUMP slid 8.9% and 3%, respectively.
Market Outlook: All Eyes on U.S. Inflation Data
With economic uncertainty weighing on markets, attention turns to this week’s U.S. inflation data for potential clarity on interest rate trajectories. The crypto market remains vulnerable to broader economic trends and regulatory developments.
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