By Vicky Ge Huang

Bitcoin was supposed to boom under a crypto-friendly Trump administration, but prices have tumbled 25% since hitting an all-time high on Inauguration Day.

The largest cryptocurrency slid to about $79,000 on Monday, its lowest level since November, according to CoinDesk data. Ether, the second-largest cryptocurrency, dropped below $1,900 to its lowest level in more than a year.

Crypto stocks plunged too, with Coinbase Global and MicroStrategy both down more than 15% on Monday afternoon. MicroStrategy had unveiled plans earlier in the day to sell up to $21 billion of stock to buy more bitcoin.

The crypto market's recent slide has mirrored the reversal of a post-election rally in the stock market. Worried about slowing economic growth and stubborn inflation, investors have been shifting away from risk assets, including tech stocks and cryptocurrencies.

Geopolitical tensions and concerns about corporate earnings growth have also bred an overall sense of uncertainty, pushing investors out of volatile assets, said Eliézer Ndinga, head of strategy at 21.co, the parent company of crypto asset manager 21Shares.

"Crypto is often at the top of that risk-off list, so it's taken a hit alongside other high-growth plays," Ndinga said.

The price declines came after some two dozen crypto executives convened in D.C. on Friday to attend the first-of-its-kind White House digital-asset summit. Last week, President Trump signed an executive order that officially established the bitcoin reserve and a stockpile for other cryptocurrencies. The order, however, disappointed some traders because it didn't require the government to purchase additional cryptocurrencies or bitcoin in the near term.

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(END) Dow Jones Newswires

March 10, 2025 15:44 ET (19:44 GMT)

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