Bitcoin dropped below $84,000 on Monday, losing nearly 6% in a sharp move that mirrored broader weakness across global markets. Ethereum also fell by about 6% to trade below $2,850, while Solana lost over 6.5% and XRP declined more than 5.5%. The total crypto market cap dropped by 5% to $2.87 trillion, with over $500 million in liquidations across digital assets in just a few hours.
Read also: Solana Slides to Critical Support: Can It Hold the Line at $115?
Gold and Silver Selloff
A rapid drop in precious metals may have played a key role. Gold fell more than $400 in under 30 minutes after briefly touching record highs above $5,600 per ounce. Silver experienced a similar move. The sudden shift triggered broader market volatility, affecting equities and digital assets.
Bitcoin often reacts to broader market sentiment, and the speed of gold’s decline appeared to spark a wave of selling in crypto markets as well. The correlation between Bitcoin and macro assets remains high, especially during periods of high volatility and uncertainty.
Read also: How to Invest in Gold: From Coins and Bars to Crypto Tokens
Tech Stocks and Fed Reaction
The selloff extended to US equities, particularly in the tech sector. Microsoft fell over 12%, its steepest decline in four years, despite beating earnings expectations. Concerns about slowing cloud growth and ongoing AI-related spending weighed on investor sentiment.
This came after the Federal Reserve’s decision to keep interest rates unchanged. While steady rates typically support risk assets, markets appeared unconvinced, with the Nasdaq dropping more than 2.5%. The broader pullback in tech and growth stocks added further pressure to crypto.
