Bitcoin has fallen below the $70,000 level for the first time in 15 months, as a risk-off mood spreads across global markets. The world's largest cryptocurrency is extending its downward spiral, having declined more than 44% from its peak last October. During early trading in New York on Thursday, Bitcoin dropped to as low as $69,821, hovering near its lowest level since early November 2024, when Donald Trump was re-elected as U.S. President.
Shiliang Tang, Managing Partner at Monarq Asset Management, stated, "The market is currently experiencing a 'crisis of faith.'" While earlier declines were driven by cryptocurrency-specific liquidations, recent pressure is linked to broader cross-asset stress.
Markets entered a synchronized selling phase on Wednesday, with the Nasdaq 100 Index falling more than 2%. Declines were seen across software, chipmakers, and other interest-rate-sensitive stock market sectors. The sell-off in equities continued on Thursday, with most benchmark stock indexes in Asia and Europe moving lower.
"Markets have been hit hard over the past week, and sentiment in the cryptocurrency space is now extremely fearful," said Andrew Tu, Head of Business Development at crypto market maker Efficient Frontier. "If Bitcoin fails to hold above $72,000, it could likely fall toward $68,000, and potentially even revisit the 2024 lows after any initial rebound."
Inflows into U.S.-listed Bitcoin exchange-traded funds (ETFs) remain volatile. According to data from relevant institutions, after a net inflow of approximately $562 million on Monday, more than $800 million flowed out of such ETFs over the following two days.
There is growing skepticism about Bitcoin's role as a safe haven during market turbulence. Since the start of the year, Bitcoin's price has fallen nearly 20%, while the overall cryptocurrency market has lost over $460 billion in market capitalization in the past week.
