Cryptocurrencies fell on Tuesday as fears of a sell-off in U.S. stocks overshadowed President Donald Trump's recent pro-crypto moves.
US Stock Sell-Off Pulls Crypto Market Down
- Bitcoin (BTC) has settled above $79,000 after falling over 4% in early Asian trading.
- Ethereum (ETH) fell 6% to $1,756, hitting its lowest intraday level since October 2023.
- The losses followed a sharp 3.8% drop in the Nasdaq 100 Index, marking its worst session since October 2022.
Macroeconomic Fears Weigh on Crypto
Wall Street has become increasingly cautious about the U.S. economy as Trump warns of potential “discomforts” over trade tensions with Canada, Mexico and China.
“There are now fewer positive catalysts in crypto after Trump’s Bitcoin reserve executive order, leaving the market vulnerable to broader macro risks,” said Joshua Lim, Co-Head of Global Markets at FalconX.
Trump's Bitcoin Reserve Announcement Fails
The market reacted negatively despite Trump’s March 7 executive order establishing a Bitcoin reserve in the US. The order requires the Treasury and Commerce Departments to explore “budget-neutral” Bitcoin acquisition strategies, meaning the government will not make immediate purchases.
“The market is overreacting to the news,” said Hayden Hughes, head of crypto investments at Evergreen Growth. “But my view is that the market is currently oversold and we should see strong buying support at $73,000 and $70,000.”
Crypto ETFs Take a Hard Hit
Leveraged ETFs tied to crypto and blockchain themes were among the biggest losers, with those tracking Strategy (formerly MicroStrategy) down more than 30%.
While the crypto remains under pressure, analysts see key support levels ahead, suggesting potential buying opportunities if Bitcoin continues its decline.
*This is not investment advice.
