Written by: Blockhead Translated by: Vernacular Blockchain

After the uncertainty of U.S. tariffs, the loss of confidence in cryptocurrency investors has intensified the loss of confidence in cryptocurrency investors following the $1.5 billion Ethereum hack on Bybit trading platform last week, causing Bitcoin to fall below $90,000 and hit its lowest point since November 18 on Tuesday.

Bitcoin fell more than 7% to about $87,200, down more than $20,000 from the peak of more than $109,000 set by Donald Trump’s inauguration day last week.

As the US economy shows signs of weakening, recession concerns have returned. There is growing evidence that Americans are intensifying their anxiety about the future of the economy due to President Trump’s uncertainty. U.S. consumer confidence fell sharply last month, with the largest decline since August 2021.

Americans are reducing spending: More than half of consumers have delayed major life decisions due to concerns about the economic outlook and the consequences of Trump's tariff threat, according to a new Wells Fargo survey.

One ​​in six people delayed plans for continuing education, one in eight people delayed retirement plans, and about one in three delayed home purchase plans.

As a reflection of recession concerns, safe-haven Treasury bond prices rose sharply, with yields falling to their lowest point in two months.

Aggravated these concerns, Trump reiterated before Monday's deadline that it would impose a 25% tariff on imported goods from Canada and Mexico, which had been postponed last month.

The smaller cryptocurrencies have suffered far more than Bitcoin, which has fallen by about 8% in the past week. According to CoinGecko, Dogecoin, Solana and CardanoToken have dropped by about 20%.

Since the beginning of the year, encryptionThis pessimistic atmosphere has been further exacerbated by general market sentiment, especially the fluctuations surrounding meme coins in recent weeks and the recent Bybit hacking incidents. The recent decline in cryptocurrency prices is not surprising after the biggest hack in history.

The current macroeconomic situation also puts pressure on crypto investment. The bigger concern is that a small but rather worrying trend in risky assets could trigger a larger sell-off in the crypto market. Wall Street is not optimistic, and the "Big Seven" stocks have entered the adjustment range.

Tuesday was a turbulent moment for the U.S. stock market, which fluctuated at record levels for most of 2025. The seven giants that drove U.S. stock markets to rise 54% in two years have fallen sharply.

On Tuesday, the Bloomberg Big Seven index fell 3.4%, and has now fallen more than 10% from its all-time high set on December 17. During this period, the total market value of the seven companies has shrunk by $1.6 trillion. Tesla was one of the biggest drops, down 37%.

Despite the decline in stocks, we see a significant decoupling between cryptocurrencies and U.S. stocks. This year, the correlation between Bitcoin and Nasdaq has dropped significantly, and the market's sentiment towards cryptocurrencies is generally negative. "The crypto market is in a deep sense of negative sentiment, mainly due to a series of meme coin scandals and runaway incidents," said Martin Leinweber, head of digital asset research and strategy at MarketVector Indexes and author of Mastering Crypto Assets. He added: "High-profile scams like the Libra Coin incident in Argentina, Trump coins and other meme Tokens have severely hit investor confidence, resulting in a sharp drop in prices for Solana and other altcoins."

Solana is still one of the most scalable, low-cost and fast blockchains, it is now called the "Memecoin chain." Due to various FUDs (fear, uncertainty and doubt), a large amount of funds have flowed from Solana to Ethereum and other networks. But Solana's core strength remains: it is not only a gathering place for meme coins, but alsoDeFi, AI applications, real assets (RWA), and next-generation financial instruments.

At the same time, before Tuesday's plunge, the price of Bitcoin had been fluctuating in a small range of less than $100,000, causing many traders to believe that the crypto bull market was over and therefore sold Bitcoin.

But, is this really accurate?

Source: Total Return Index (benchmark 100), MarketVector Indexes

As the changes in US cryptocurrencies failed to meet expectations, this has exacerbated the shift in market sentiment, and the "decoupling" between cryptocurrencies and traditional stock markets is also intensifying. "The breakdown of the correlation between cryptocurrencies and stock markets is very unusual, especially when the current macroeconomic environment remains skewed towards venture capital."

As the dollar weakens, the head of MarketVector Indexes expects that cryptocurrencies and other risky assets will benefit as much as they did in the past. He said: "Because of this situation, it is unlikely that cryptocurrencies will remain in a downturn for a long time. Capital flowing into the stock market will sooner or later return to the digital asset market."

RineWeber said that more than 93% of the top 100 cryptocurrencies are trading below their 90-day moving average. This severe market situation usually occurs before the market bottoms out rather than lasting for a long time.

The market indicators that track social media activity, volatility, trends and prices—the Crypto Fear and Greed Index—recently fell to its five-month low of 25, reflecting the growing pessimism of market sentiment. As Trump tariffs are uncertain, cryptocurrency prices continue to decline.

Some analysts began to think about whether it was time to "buy at the bottom". In the long run, Geoffrey Kendrick, global head of digital assets research at Standard Chartered, said Bitcoin could benefit from a decline in U.S. Treasury bond yields, a change that stems fromMarket sentiment turned to hedge after the PMI report last Friday, and a rebound is expected to occur in the medium term.

"But now is not the time to buy at the bottom, and the market may fall to around $80,000," Kendrick added.

Bernstein analysts reiterated their forecast for Bitcoin’s year-end price to reach $200,000, and traders are closely watching for upcoming U.S. inflation data to look for possible bullish signals, especially as the data trends toward Fed targets. However, Trump's has begun to negatively impact crypto assets and the broader risk market. The uncertainty of whether tariffs are a negotiation strategy or a real threat is uneasy for many investors.

Bank of America strategist Michael Hartnett said "doubts about the S&P 500's trend" are growing as market risks continue to rise.

Even so, Wall Street's benchmark index is only 2.6% away from the all-time high it hit last week.

In an interview with Bloomberg TV today, Hartnett warned that if the stock price falls by 6% again, action may be taken to stop the decline.

At the same time, Elon Musk's "Efficiency Department" is still actively seeking jobs and budget cuts in Washington. Investors are trying to quantify the impact of this cleaning on the Fed's interest rate trend, and the market's pessimism is very obvious.

Bloomberg economist Anna Huang said that if DOGE can achieve a $100 billion budget cut, that would be enough to lower the consumer price index by 0.2 percentage points. If the cuts were greater, reaching $600 billion, that would amount to a 0.8 percentage point reduction. She believes that if the above situation occurs, the Fed will have to cut interest rates further. "The rate cut is expected in 2026 = an underestimation of Elon," Anna said.

Fears over stricter chip restrictions have caused semiconductor stock prices to plummet after Trump's latest tough remarks on tariffs and Beijing. Intel and Nvidia share prices fell 1.5%, respectively, while Dutch ASML and ASMI fell 2%. Tokyo Electronics in Japan fell 4.9%. Related to cryptocurrencystocks are also falling as Bitcoin prices fell below $90,000, the lowest since mid-November. This reversed some stock market gains since Trump's re-election. Microstrategy shares fell more than 6%, while Coinbase fell more than 5%.

During Trump's first administration, the stock market was the most important indicator of the transformation from a real estate tycoon to a president. However, as Trump’s second term entered his second month, the White House’s focus has turned to a new indicator: the 10-year Treasury yield. Musk and Treasury Secretary Scott Becent mentioned the goal of reducing market borrowing costs, which is reminiscent of the presidency of Bill Clinton.

They need to focus on the Treasury market, especially the 10-year Treasury yield, because it directly affects the borrowing costs of home buyers and large U.S. businesses. It is unclear how the market responded to Becente’s proposal to cut the deficit and Musk’s critical response to bureaucracy. Investors still maintain certain expectations for the possibility of success.

U.S. Treasuries have outperformed interest rate swaps for the same maturity over the past few weeks. However, most creditors are still looking for observable, substantial results.

At present, the trend of risk avoidance still exists, and the overall macroeconomic dynamics also show certain pressure.