Bitcoin Sinks to a Four-Month Low Amid Concerns Over US Economy

Bitcoin plunged to its lowest level in four months on Monday, as rising concerns over the US economy and broader macro headwinds triggered a wave of selling across the crypto markets. The drop comes despite recent efforts by Donald Trump’s administration to boost enthusiasm for digital assets through policy initiatives like the proposed US Strategic Bitcoin Reserve.

Bitcoin fell as much as 5%, briefly dipping below $80,000. Other major cryptocurrencies also posted significant losses, with Ether, Solana, and Cardano each declining between 4% and 8% on the day.

Macro Fears Trump Crypto Optimism

The sell-off in crypto mirrors growing concerns in traditional markets, where investors are worried about a potential US recession, persistent inflation, and uncertainty over Federal Reserve interest rate policy.
Despite Trump’s public pro-crypto stance, which includes the establishment of a Strategic Bitcoin Reserve, traders are more focused on broader economic risks and tightening financial conditions.

“Macro headwinds are in full control right now,” said a crypto strategist quoted by Bloomberg. “Even Trump’s crypto push isn’t enough to counter rising fears about the economy.”

A Broad-Based Crypto Slump

The crypto slump has wiped out more than $200 billion from the total digital asset market cap in just the past week.

Bitcoin: Down 5% today; off nearly 20% from its 2025 highs.
Ether: Down 7% today; struggling to hold the $2,000 level.
Solana (SOL) and Cardano (ADA): Both facing double-digit losses over the past five days.

What’s Next for Crypto?

Investors are bracing for further volatility, particularly as markets await key US inflation data later this week. Many analysts believe crypto will remain under pressure until there is more clarity on Federal Reserve policy and US economic growth.