Bitcoin Dips Below $87K as Crypto Rally Fades; Stocks Slide Ahead of Tariffs
The surge in crypto markets following President Donald Trump’s announcement of a U.S. crypto reserve has mostly vanished, with Bitcoin (BTC) and other major assets reversing course as broader economic concerns take center stage.
By mid-afternoon U.S. trading, Bitcoin is hovering at $86,700, erasing nearly all gains from Sunday’s rally. Ether (ETH) has slipped below its pre-announcement level, while the ETH/BTC ratio has dropped to 0.025, its lowest in five years.
Altcoins mentioned in Trump’s crypto reserve plan—Solana (SOL), XRP, and Cardano (ADA)—have given up much of their weekend surge but remain slightly above pre-announcement levels.
“Crypto volatility remains elevated, with BTC and ETH still reflecting a put skew through March,” noted QCP Capital in an investor note. “Risk-off sentiment is growing, with the VIX rising as markets react to the latest U.S. tariff developments.”
Crypto-related stocks have also turned negative. Core Scientific (CORZ) and Bitdeer (BTDR), both initially up on Monday, are now trading lower. Semler Scientific (SMLR), a medical equipment company known for its Bitcoin treasury strategy, has dropped 7.3% following reports of a Department of Justice (DOJ) investigation into potential violations of federal anti-fraud laws related to its QuantaFlo product, according to Stat News.
The broader U.S. stock market is also facing headwinds. The Nasdaq has fallen 1.1%, while the S&P 500 is down 0.8% as investors brace for Trump’s tariffs on Mexico, Canada, and China, which are set to take effect tomorrow. Nvidia (NVDA), a leading semiconductor company, has tumbled 6.5% following news that three individuals in Singapore were charged with violating U.S. export controls.
“Market sentiment is turning cautious as investors weigh the impact of tariffs and their implications for economic growth,” said Jake Ostrovskis, OTC trader at crypto market maker Wintermute. “This uncertainty is fueling volatility across equities and digital assets.”
