Cryptocurrency market declines as economic concerns weigh on investors

The cryptocurrency market experienced significant losses on Tuesday, with major digital assets like Bitcoin, Ethereum, Solana, XRP, Cardano, and Dogecoin all plunging amid growing concerns over U.S. economic growth and trade tensions.

Bitcoin fell by 3.2% to $79,937 after hitting a low of $76,624, while Ethereum dropped 7.5% to $1,911. The overall crypto market capitalization declined by 4.3% to $2.6 trillion. Other cryptocurrencies also recorded steep losses, with Dogecoin losing 8.5%.

Investor sentiment weakened following an interview on Fox News where former U.S. President Donald Trump mentioned a “period of transition” without clarifying whether his trade policies could lead to a recession. His remarks contributed to declines across cryptocurrencies, stocks, and the U.S. dollar, while Treasury yields also dropped.

“The crypto market is experiencing a major downturn, with Bitcoin slipping below $80,000 and Ethereum hitting a 16-month low of around $1,800,” said Avinash Shekhar, Co-Founder & CEO of Pi42. He attributed the sell-off to fears of an impending recession and overall market instability.

Macroeconomic factors such as inflation and interest rates continue to fuel volatility in the market.

“The upcoming Job Openings and Labor Turnover data will be crucial for bulls looking to regain control,” said Edul Patel, CEO of Mudrex. “A positive outcome could help Bitcoin reclaim the $84,000 level.”

Bitcoin’s market capitalization fell to $1.585 trillion, with a dominance rate of 61.04%. Trading volume surged by 53.14% to $58.13 billion.

“Bitcoin’s ability to recover and sustain above $80,000 remains key to overall market stability,” noted Vikram Subburaj, CEO of Giottus.