In Brief:
- Bitcoin has fallen below $70,000, continuing a decline that began in October and hitting extreme market fear.
- Analysts debate whether metals rallies or tech stock weakness are driving large outflows from Bitcoin.
- The broader crypto market has lost over $460 billion in a week, with $60,000 now a critical support level.
Bitcoin is tumbling toward $60,000 territory after briefly slipping below $70,000. A broad risk-off sentiment is gripping global markets, continuing a decline that first took root in October.
Analysts are arguing over whether the rally in metals has been draining liquidity or if tech stock weakness is the real culprit. Either way large outflows are hitting Bitcoin and the pressure continues to mount.
The token has now lost more than 42% from its October highs. By 11:15 GMT it was trading at $70,810 after a brief intraday dip to $69,000.
Early stages of the fall were driven by crypto-specific liquidations, but the losses on Tuesday and Wednesday reflect stress spilling over from equities. US markets have been under pressure all week, with the tech heavy Nasdaq 100 down more than 3%.
Sentiment across the crypto market has turned to extreme fear. If $70,000 fails to hold, Bitcoin could test $67,000 and push further down to levels last seen during the 2024 lows.
Flows into US-listed Bitcoin exchange-traded funds remain choppy. Nervous investors are shifting money in and out of the market as the decline continues.
The token is down roughly 17% this year and the broader crypto market has lost over $460 billion in value over the past week. This leaves the $60,000 zone as the key level for traders to watch.