Crypto Market Reverses Gains as Bitcoin Falls Below $87K, Stocks Turn Lower
The brief surge in cryptocurrency prices following President Donald Trump’s announcement of a U.S. crypto reserve has mostly faded, with Bitcoin (BTC) and other major assets retreating to pre-announcement levels.
As of mid-afternoon trading in the U.S., Bitcoin is hovering around $86,700—just above where it was before Trump’s Sunday social media post. Meanwhile, Ether (ETH) has fallen below its pre-announcement price, and the ETH/BTC ratio has slumped to 0.025, marking a five-year low.
Other cryptocurrencies included in Trump’s reserve plans—Solana (SOL), Ripple’s XRP, and Cardano (ADA)—have also retraced much of their gains, though they remain slightly higher than before the announcement.
“Crypto volatility remains elevated, with both major assets still reflecting a put skew through the end of March,” crypto trading firm QCP Capital noted in a message to investors. “The VIX is also up, signaling broader risk-off sentiment in financial markets, particularly in response to recent U.S. tariff escalations.”
Crypto-related stocks have followed suit, surrendering early gains on Monday. Companies such as Core Scientific (CORZ) and Bitdeer (BTDR) have now turned negative on the session. Semler Scientific (SMLR), a medical equipment company known for its Bitcoin treasury holdings, is down 7.3% amid news of a Department of Justice (DOJ) investigation into potential violations of federal anti-fraud laws concerning its QuantaFlo product, according to Stat News.
The broader stock market is also in decline ahead of Trump’s upcoming tariffs on Mexico, Canada, and China. The Nasdaq has dropped 1.1%, while the S&P 500 is down 0.8%. Nvidia (NVDA), a key player in the semiconductor sector, has plunged 6.5% following news that three men in Singapore have been charged with breaching U.S. export control regulations.
“Concerns over U.S. economic growth and the implementation of tariffs on key trading partners—set to take effect tomorrow—are weighing on equities and interest rates,” said Jake Ostrovskis, an OTC trader at crypto market maker Wintermute.
