Bitcoin Plunges 6% to 7-Week Low as US Stocks Erase Post-Election Gains

Bitcoin tumbled 6% to a seven-week low on Tuesday, dragged down by a sharp sell-off in US stocks that erased gains made since the November election. The leading cryptocurrency fell to around $86,000, its weakest level since mid-January, as risk appetite soured across financial markets. The S&P 500 and Nasdaq also dropped, with investors citing concerns over inflation, interest rates, and the impact of new tariffs. The downturn marks a reversal of the post-election rally that had pushed both equities and crypto to record highs. Analysts note that Bitcoin's correlation with tech stocks has increased, making it more vulnerable to macroeconomic shifts. The sell-off underscores the fragility of the recent rally and raises questions about whether digital assets can decouple from traditional markets. For investors, the drop serves as a reminder that crypto remains a high-risk asset class in times of uncertainty. As markets digest the latest economic data, traders will watch whether Bitcoin can hold key support levels or if further downside is ahead.