Bitcoin prices fell quickly after rising higher on Monday. As investor sentiment towards the industry remained negative and U.S. President Trump threatened tariffs, Bitcoin fell below $90,000 again on Monday. According to CoinMarketCap data, the current price of Bitcoin is around $86,000, a drop of more than 8% in 24 hours. In addition to Bitcoin, Ethereum fell by more than 14% in 24 hours, Ripple fell by more than 17%, and Solana fell by more than 18%. The overall performance of the crypto market has been very weak.
CoinShares reported that outflows from cryptocurrency exchange-traded products last week were as high as $2.9 billion. This is the third consecutive week of outflows after 19 consecutive weeks of inflows.
At the same time, gains in cryptocurrency-related stocks were also short-lived. Microstrategy shares rose 14% at the open on Monday, driven by Trump's cryptocurrency reserve remarks, but fell more than 1.8% at the close. Crypto exchange Coinbase fell 4.6% on Monday.
Macro factors led the decline
Over the weekend, Trump announced the establishment of a strategic cryptocurrency reserve, a twist on the “Bitcoin Reserve” he had previously touted, which he said would include Bitcoin, Ethereum, Ripple, Solana, and Cardano’s ADA.
As a result, Bitcoin briefly rose back to $95,000 on Monday, and other smaller tokens also saw double-digit gains. However, this was not enough to save cryptocurrencies from extinction.
Aurelie Barthere, chief research analyst at Nansen, said that establishing a U.S. cryptocurrency reserve will take time and it will require a vote from Congress. Nicolai Sondergaard, a research analyst at the same company, warned that the prices of tokens selected as cryptocurrency reserves will fluctuate.
On the other hand, the long-term benefits of the industry are difficult to overcome the major concerns at the macro level. Yuya Hasegawa, a cryptocurrency market analyst at Japanese Bitcoin exchange Bitbank, said that Trump’s remarks about cryptocurrency reserves will not continue to drive up token prices and that the market has already digested his plan.