Analysis: Crypto market's recent drop linked to Mt. Gox's BTC transfer and recession fears

Inky Cho, a financial markets strategist at the global multi-asset trading platform Exness, said that the recent drop in the crypto market might be due to panic selling caused by the previous transfer of Bitcoin (BTC) from the now-defunct exchange Mt. Gox to settle debts, according to Odaily. He also noted that comments from U.S. President Donald Trump about a possible economic recession have put pressure on both the stock and crypto markets. He pointed out that BTC's correlation with the Nasdaq is currently around 40%. However, BTC and Ethereum (ETH) along with other altcoins are starting to diverge. BTC is increasingly seen as a hedge against economic uncertainty and U.S. tariffs, while altcoins including ETH remain closely linked to the Nasdaq which is dominated by tech stocks. Over the long term, he expects that BTC’s role as a hedge against tariffs could become more significant, especially if tariffs lead to economic instability.