Bitcoin it briefly dipped below the $90,000 level on Monday, deepening its decline as investors continue to abandon growth-oriented assets such as cryptocurrency and technology stocks.
According to Coin Metrics, the price of the flagship cryptocurrency recently dropped by 3% and stood at $91,358.66 at the beginning of the week. It had previously dropped to $89,259.00. Bitcoin has dropped 10% over the past week.
Bitcoin deepens its decline as growth-oriented assets continue to suffer losses
Ether lost 7% on Monday, and the broader cryptocurrency market, as measured by CoinDesk 20 the index fell by over 5%. Shares Coinbase AND Micro-strategy decreased by 4% and 3% respectively. Mara Holding decreased by 4% i Scientific core retreated by 2%.
The decline in crypto assets began last week after stronger-than-expected payroll numbers resulted in: sharp increase in bond yields and among concerns about President-elect Donald Trump's tariff plans – both gave a boost to the dollar while putting pressure on Bitcoin and other risky assets.
“The need for liquidity is driven by currency spikes resulting from the US economy's strong year-end performance, strong stock market gains, and there are other areas where money is needed in the short term,” said James Davies, co-founder and CEO of cryptocurrency trading platform Crypto Valley Exchange. “If we want bitcoin to function as a currency, we have to accept the situation in which that happens, and this is one of those moments. The US dollar has strengthened and everything else, including bitcoin, is weaker when measured in dollars.”
Investor sentiment in 2025 was optimistic, with markets looking forward to a pro-crypto Congress and the White House. Until last week, that hope outweighed any concerns about macroeconomic speed bumps.
Investors are now warning that the first quarter of this year could be more turbulent for cryptocurrencies than previously expected.
Bitcoin's price rose 120% in 2024, but fell 3% in the new year.