Europe Markets Reel as Bitcoin Suffers Its Worst Day Since March

European markets start the month under pressure as Bitcoin posts its steepest daily decline since March. The selloff hits early and carries through the session, with Bitcoin trading around $85,900 after dropping about 6 percent. Ether is weaker as well, falling more than 8 percent to roughly $2,776. Traders who expected last month’s modest rebound to continue instead face renewed volatility, which quickly sets the tone across risk assets.Weakness Spreads Across Crypto and Related StocksLooking for Early Signals in a Cooling MarketAsia Adds Pressure After Regulatory RemarksLeverage Turns a Dip Into a Steeper SlideRetail Traders Add Extra VolatilityGlobal Uncertainty Continues to Weigh on Sentiment

The global backdrop isn’t helping stabilize conditions. Investors remain divided on the outlook for potential U.S. inflation, and each data point or policy remark shifts expectations again. That uncertainty filters into risk assets broadly, particularly sectors that have rallied sharply this year. High valuations across AI-linked tech stocks keep global markets on edge, raising concerns that any disappointment in growth or earnings could spill over into other areas. In crypto, the tone is equally cautious. Some desks say clients are opting to hold higher cash levels while waiting for clearer direction on interest rates, liquidity conditions, and regulatory updates. Until those signals turn more definitive, participation is likely to stay thin, leaving the market more vulnerable to outsized moves.