The recent significant drop in consumer confidence negatively impacted the US stock market and also the crypto sector.
Consumer Confidence Drops Affecting Stock and Crypto Markets
Recently, the Consumer Confidence Index dropped from January’s 105.3 to 98.3, marking the largest decline in the last four years. This decrease prompted a downturn in major US stock values and adversely affected the cryptocurrency market, which saw a $325 billion wipeout in market cap.
Bitcoin Forecast: Tariffs and Hacks Impact Analysis
On Tuesday, Bitcoin's price retracted to $90,000 due to escalating US tariffs and inflation. The drop also affected other digital assets. Outflow accelerations were intensified by a string of negative events, including purported North Korean hacks on Bybit and controversies around meme coins.
US Stock Decline and Its Impact on the Crypto Industry
Top stocks such as Nvidia, Tesla, and Zoom reported losses amid wavering consumer confidence. Nvidia fell by 3.3%, Tesla by 5.8%, and Zoom sunk by 9.3%. These shifts have also impacted the cryptocurrency market, with Bitcoin declining to $88,788. In addition to Bitcoin, altcoins such as Ethereum, Solana, and DOGE also faced selling pressures.
The decline in consumer confidence and trade wars significantly affect both stock and crypto markets, underscoring the importance of caution and asset diversification.
