Cryptocurrencies, long hailed for their potential as digital assets offering refuge from traditional market fluctuations, have fallen into turmoil alongside global market sell-offs. Bitcoin, the world’s most popular cryptocurrency, dropped below $75,000 early Monday morning before experiencing a slight rebound. This marks the lowest point for Bitcoin since the initial post-election bull run spurred by President Donald Trump’s victory in 2024.
The downturn has caught the attention of both investors and analysts. Bitcoin had once been heralded as “digital gold,” a store of value immune to traditional financial turbulence. However, this narrative is now facing increased scrutiny. Independent cryptocurrency analyst Garrick Hileman noted, “Bitcoin’s price slide shows that this theory still hasn’t proven true. It trades more like a risky tech stock than a stable asset.” This sentiment underscores the growing concerns over the volatility of cryptocurrencies, particularly in times of economic uncertainty.
In addition to Bitcoin’s decline, other major digital assets have experienced even steeper losses. Ether, the second-largest cryptocurrency by market capitalization, was trading around $1,500 on Monday, shedding roughly half its value since February when Eric Trump, President Trump’s son, encouraged his followers to buy the token. The significant drop in ether’s price has raised questions about the stability and long-term viability of cryptocurrency investments.
Meanwhile, President Trump’s own meme coin, which was launched just before taking office and once reached over $70, dipped below $8 on Monday. The drastic decline in the value of his meme coin reflects the broader downward trend in the crypto market.
The recent fall in cryptocurrency prices highlights the sector’s ongoing volatility, with many digital assets now trading at levels not seen since the start of the year. As the global market continues to grapple with economic challenges, investors are left questioning the true nature of cryptocurrencies as a hedge against market instability.
