Bitcoin fell below $71,000 on Wednesday night, deepening selling pressure amid rising risk aversion in global markets, reaching its lowest level since October 2024.
The world’s largest cryptocurrency fell 7.2% in the last 24 hours to $70,672. Ethereum also dropped 7.8% in the same period, falling to $2,091.
Vincent Liu, CIO of Kronos Research, said, “Bitcoin accelerated its decline after losing key support levels following a weak attempt at a recovery. Long position liquidations, contagion from the sharp sell-off in US stock markets through technology stocks, and continued ETF outflows increased downward pressure on the crypto market.”
The sell-off also affected crypto-related stocks. Coinbase shares closed down 6.14%, while Ethereum treasury company Bitmine lost 9.17% of its value. In the US, the Nasdaq Composite Index fell 1.51%, while the Dow Jones Industrial Average rose 0.53%.
Analysts say the current pullback is due more to macroeconomic conditions putting pressure on risky assets than to a crypto-specific shock.
Presto Research Director Peter Chung stated, “The price movement in crypto is mirroring the overall risk aversion in the markets. Last night’s pressure pushed Bitcoin to its lowest level of the year, while investor psychology hit its weakest point since the last bear market.”
The Crypto Fear & Greed Index remains at 12, indicating an “extreme fear” zone. Liu stated that investors are particularly watching whether the $70,000 level can be maintained, and that a decrease in liquidations, a recovery in sentiment, and a balancing of ETF flows could be the first signals that selling pressure is weakening.
*This is not investment advice.
