Bitcoin Drops to $79,000 as Inflation Worries Mount

The cryptocurrency market continued to lose ground on Monday, following a decline on Friday driven by macroeconomic data that heightened concerns about rising inflation.

Bitcoin (BTC) dropped 4% in the past 24 hours to trade at around $79,000. Meanwhile, Ethereum (ETH) slipped 3.4% to $1,960, while XRP fell 2% to $2.09. Solana (SOL) plunged 7% to $119, according to CoinGecko.

The cryptocurrency market declined by 5% in the past 24 hours, reducing its total market capitalization to $2.7 trillion.

In the same period, 235,075 leveraged traders were liquidated, with total liquidations reaching $682 million. Bitcoin (BTC) accounted for $272 million, followed by Ethereum (ETH) at $115 million, while altcoins contributed $69 million, according to CoinGlass data.

Analysts point to macroeconomic pressures, inflation concerns, and shifting investor sentiment as key drivers behind the decline. Amid this uncertainty, some experts predict further losses before a potential rebound.

Will Bitcoin Continue to Drop?

“In the short-term, we expect BTC to drop as low as $72,000 and ETH to hit $1,600 while the administration seeks to control inflation,” said Zach Burks, CEO and founder of Mintology. “Many investors are pulling out of Bitcoin, viewing it as a risky asset class for the first time since Trump took the White House.”

Burks explained that Bitcoin is no longer fulfilling its traditional role as a store of value, with many investors turning to gold, whose price has spiked as a result. He called the shift "no surprise, as tariffs and global tensions continue to escalate."

“We would love to see ETH hit $4,000 in future months, and for BTC to rally at over $110,000, but we must weather this MAGA-inflicted mini recession before we get to move up the layer cake,” he said.

Weak Jobs Data

The volatility follows Friday’s release of the February US jobs report, which revealed that the US economy added only 151,000 jobs in February, falling short of the expected 170,000. Additionally, the unemployment rate rose slightly to 4.1%, as federal layoffs and hiring freezes persist.

“Uncertainty over the trade war and other domestic policies is already starting to weigh on the US labor market, with weaker-than-expected employment figures from both the Bureau of Labor Statistics and ADP,” said Samer Hasn, Senior Market Analyst at XS.com.

Hasn noted that these figures suggest employers are hesitant to add more jobs, which could exert further pressure on stocks.

“This week will also be a critical one for stocks in the coming weeks, with the JOLTS, CPI, PPI and University of Michigan surveys on inflation and consumer confidence,” Hasn concluded. “If the data reinforce the prevailing narrative – high inflation, weak labor market and weak confidence – stocks could continue to trend lower and move closer to a corrective market.”