Crypto
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Bitcoin tumbled below $79,000 on Monday, extending its Sunday decline as fears of a recession loom.
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The cryptocurrency sank about 5% over the past 24 hours, and was trading at around $78,527 midday, marking a more than 13% decline over the past five days. Ethereum was down about 5% over the last 24 hours, Tether was mostly flat, and XRP was down about 4%, while Solana approached an 8% drop. Cardano shed 7% over that period, bringing its five-day decline to nearly 31%.
Crypto stocks are behaving much like the broader market, as President Donald Trump’s tariffs on Canada, Mexico, and China spark fears of a recession. Major business groups have warned that Trump’s planned taxes on imports of foreign goods will hurt their industries and consumers.
Goldman Sachs (GS+0.34%) said on Friday that the likelihood of a recession within the next 12 months has increased to 20% from 15%. If the White House continues with additional tariffs, such as the planned 25% duties on aluminum and steel set to kick in on March 12, the bank said the risk of a recession could increase.
On Sunday, Trump was asked by Fox News (FOXA+0.19%) host Maria Bartiromo if he was expecting a recession this year. The president didn’t deny that was a potential outcome.
“I hate to predict things like that,” Trump replied. “There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing, and there are always periods of, it takes a little time. It takes a little time, but I think it should be great for us,” he said.
Crypto stocks also didn’t react favorably to the president’s plans to establish a strategic Bitcoin reserve and a separate stockpile of digital assets. The U.S. owns more than 198,000 Bitcoin, worth just shy of $16 billion on Monday afternoon, according to Arkham, along with hundreds of millions of dollars worth of other cryptocurrencies.
After a wave of support from the Securities and Exchange Commission, which withdrew litigation against major crypto firms and declared that memecoins are generally not securities, some in the industry had expected something more from the president. Others have praised the initiative and said it would benefit Bitcoin in the long-term.
Trump, who has slapped his name on a few crypto projects, on Friday spoke somewhat optimistically about the industry, telling a group of industry leaders that “we feel like pioneers in a way.”
“From this day on, America will follow the rule that every bitcoin knows very well: Never sell your Bitcoin. That’s a little phrase that they have,” he said at the White House’s crypto summit. “I don’t know if that’s right or not. Who the hell knows, right? Who knows? Who knows, but so far, it’s been right, and well, let’s keep it that way.”
Harri Weber contributed to this story.
