This post was originally published on this site
Bitcoin (BTC-USD) briefly fell below $50,000 on Monday for the first time since February, marking a significant drop of nearly 30% from the $70,000 price level reached a week ago. The cryptocurrency later rebounded, trading above $54,000 early Monday afternoon. This sharp decline comes as fears surrounding the U.S. economy have extended the market sell-off from equities to cryptocurrencies, resulting in approximately $1.2 billion in crypto liquidations over the past 24 hours.
Impact on Bitcoin ETFs, Altcoins, and Crypto Stocks
The turmoil has extended to bitcoin ETFs and other crypto assets. Investors pulled $237.4 million from spot bitcoin ETFs on Friday, according to Farside Investors. Alternative cryptocurrencies have experienced even steeper declines, with Ether (ETH-USD) falling 24% over the past week and Solana (SOL-USD) down 28%.
Crypto-related stocks also suffered significant losses. Shares of MicroStrategy Incorporated (NASDAQ:MSTR), a major corporate bitcoin holder, dropped 9%. Block, Inc. (NYSE:SQ) and Coinbase Global, Inc. (NASDAQ:COIN) saw declines of 2% and 5%, respectively. Bitcoin mining stocks were also affected, with Cleanspark, Inc. (NASDAQ: CLSK) falling 11%, Hut 8 Mining Corp (NASDAQ:HUT) down 7%, Marathon Digital Holdings, Inc. (NASDAQ:MARA) declining 5%, and Riot Platforms, Inc. (NASDAQ:RIOT) falling 3%.
Historical Context and Long-Term Outlook
Large price drawdowns are not unusual for Bitcoin during bull markets, especially following halving events such as the recent one in April. Despite its intended role as a haven asset, bitcoin’s recent sell-off alongside the equities market suggests it continues to act as a risk-on asset amid global market uncertainty.
However, some long-term bitcoin proponents remain optimistic. Bitwise Chief Investment Officer Matt Hougan noted on X (formerly Twitter) that while sell-offs are common during market panics, they contribute to the long-term narrative for Bitcoin.
Featured Image: Freepik
