Coinbase and MicroStrategy were down 15 and 18% pre-market as the global system slowed.

Key receivers

Bitcoin and Ether experienced significant price declines, with Bitcoin falling below $50,000. Major crypto-related stocks such as Coinbase and MicroStrategy suffered heavy losses.

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Crypto prices and crypto-related stocks fell on Monday as global markets weighed on disappointing US economic data and escalating tensions in the Middle East. The downturn affected major cryptocurrencies, mining companies and crypto-specific businesses.

Bitcoin, the largest by market capitalization, experienced a sharp decline of up to 15%, briefly falling below $50,000 for the first time since February, before recovering to around $51,000. Ether, the second largest, continued its downward trend for the seventh consecutive day, marking the most significant decline since at least May 2021.

Global market collapse

According to data from CoinGecko, the crypto market has fallen sharply by nearly 20%, and by 6 AM EDT was sitting on a 17% loss, reaching $1.8 trillion. This decline coincided with a fall in equity markets in Asia and Europe, reflecting a shift in global investor sentiment.

Crypto mining companies have been among the heaviest in the stock market. Marathon Digital and Iron both fell nearly 14 percent, while Hat 8 and Riot Platforms lost 12 percent and 11 percent, respectively. These steep drops in mining stocks have closely mirrored the fall in Bitcoin's price.

The impact of economic data, geopolitical tensions

Market volatility comes in the wake of disappointing US economic data. The Labor Department's latest jobs report, with lower-than-expected numbers and a higher unemployment rate forecast, raised concerns about the strength of the world's largest economy. The escalating geopolitical tensions escalated after Iran threatened to attack Israel in response to last week's assassination of Hamas political chief Ismail Haniyeh in Tehran.

Bitcoin price fell to $53,000 by the end of Sunday, with Ether falling sharply on the shock of the Bank of Japan's interest rate hike. Bitcoin has recently fallen to $49K, although it has recovered slightly to the $51K level at the time of writing, despite extensive selling that has put the sector above $1 billion.

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