Bitcoin experienced a sharp decline, briefly falling below $US72,000, a level unseen since November 2024, as global markets faced a broad risk-off movement. The world’s largest cryptocurrency is in a downward trend, having lost over 42 per cent of its value since its peak in October of the previous year. Bitcoin touched a low of $US71,739 late Wednesday in New York.
According to Shiliang Tang, managing partner of Monarq Asset Management, the market is currently experiencing a ‘crisis of faith’. While previous declines were due to crypto-specific liquidations, Wednesday’s pressure is linked to wider cross-asset stress. Markets saw synchronised selling, with the Nasdaq 100 dropping more than 2 per cent, and losses affecting software, chipmakers, and other rate-sensitive areas of the equity market.
Andrew Tu, head of business development at crypto market maker Efficient Frontier, noted that “Crypto sentiment is currently in extreme fear as the market has been routed over the last week.” He added that failure to hold $US72,000 could lead to further declines. Flows into US-listed bitcoin exchange-traded funds remain choppy, with investors withdrawing $US272 million on Tuesday after net inflows of approximately $US562 million on Monday, according to Bloomberg data.
Growing scepticism surrounds bitcoin’s role as a safe haven during market turmoil. The token is down about 17 per cent this year, and the broader crypto market has lost more than $460 billion in value over the past week.
