Bitcoin fell below the $70,000 mark for the first time in 15 months, and risk aversion prevailed in global markets. The world's largest cryptocurrency is continuing its downward spiral, having fallen more than 44% from its October high. Bitcoin fell to as low as $69,821 in early New York trading on Thursday, trading near its lowest level since Donald Trump was re-elected as U.S. president in early November 2024.
Shiliang Tang, managing partner of Monarq Asset Management, said, "The market is currently experiencing a 'crisis of faith.'"
While earlier declines were driven by cryptocurrency-specific liquidations, the recent pressure is related to broader cross-asset pressures.
The market entered a period of synchronized selling on Wednesday, with the Nasdaq 100 down more than 2%, with losses in software, chipmakers and other interest-rate-sensitive stock market sectors. The losses in stocks continued on Thursday, with most benchmark stock indexes in Asia and Europe lower.
“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. According to data from relevant agencies, after a net inflow of approximately US$562 million on Monday, more than US$800 million flowed out of such ETFs in the following two days.
Markets are increasingly skeptical of Bitcoin's role as a safe haven during times of market turmoil. Bitcoin prices have fallen nearly 20% this year, while the entire cryptocurrency market has lost more than $460 billion in market value in the past week.