Bitcoin Drops Below $94K as Crypto and Equity Markets Struggle
Bitcoin (BTC) extended its decline on Monday, pressured by ongoing macroeconomic uncertainty and widespread weakness across the cryptocurrency market. A lackluster performance in U.S. equities further weighed on investor sentiment.
As U.S. stock markets closed, Bitcoin dipped to approximately $93,900, marking a 1.9% decline over the past 24 hours. Ether (ETH) fell even more sharply, sliding 5.9%, while the broader CoinDesk 20 Index recorded a 5.1% drop.
Major U.S. stock indices attempted to stage a recovery but failed to sustain momentum. The Nasdaq closed down 1.2%, and the S&P 500 ended the session lower by 0.5%, extending last week’s losses.
Among major cryptocurrencies, Solana (SOL) was the hardest hit, plummeting nearly 10% in a single day and down 41% over the past month. Contributing to the sell-off is the cooling of the memecoin frenzy, upcoming token unlocks in March, and an inflationary shift caused by the recent implementation of SIMD-96, which altered the network’s fee structure. Trading at $151, SOL has erased all of its post-election gains.
Quinn Thompson, founder of crypto hedge fund Lekker Capital, warned traders against complacency, stating, “$95,000 is still not a bad exit price relative to where I think we could trade in 6-12 months.” He estimated an 80% chance that Bitcoin will not set new highs in the next three months and a 51% chance of stagnation for up to a year.
Beyond the crypto market, concerns about the U.S. economy are mounting. Neil Dutta, head of economic research at Renaissance Macro Research, highlighted growing risks to the labor market. Slowing real income growth, a weakening housing sector, and spending cuts by state and local governments all point to potential economic headwinds.
Market forecasts still anticipate GDP growth of around 2.5%, but Dutta warned that downside surprises could dominate in 2025.
“The biggest risk is a passive tightening of monetary policy, which could lead to lower long-term interest rates, weaker equity markets, and declining risk appetite,” he noted. “For the economy, this would likely translate into worsening job market conditions.”
