Bitcoin once fell below $71,000, its lowest level in 15 months, as risk aversion prevailed in global markets. The world's largest cryptocurrency is continuing its downward spiral, down about 42% from its October high. Bitcoin fell to $70,582 in New York late Wednesday local time, its lowest level since November 6, 2024, the day after Donald Trump was re-elected as President of the United States.
Shiliang Tang, managing partner of Monarq Asset Management, said, "The market is currently experiencing a 'crisis of faith.'"
While earlier losses were driven by cryptocurrency-specific liquidations, Wednesday's pressure was tied to broader cross-asset pressures.
The market entered a period of synchronized selling on Wednesday, with the Nasdaq 100 index falling 2.6% at one point, and software, chip manufacturers and other interest-rate-sensitive stock market sectors all fell.
“The market has been hit hard in the past week, and cryptocurrency market sentiment is extremely panicked right now,” said Andrew Tu, director of business development at cryptocurrency market maker Efficient Frontier. “If Bitcoin fails to hold $72,000, a drop to $68,000 is likely, and possibly even a fall back to the 2024 lows after the initial rally.”
Inflows into U.S.-listed Bitcoin exchange-traded funds (ETFs) remain volatile. Investors withdrew $272 million on Tuesday after net inflows of about $562 million on Monday, according to data compiled by Bloomberg.
Markets are increasingly skeptical of Bitcoin's role as a safe haven during times of market turmoil. Bitcoin prices have fallen about 17% this year, while the entire cryptocurrency market has lost more than $460 billion in market value in the past week.