Bitcoin slid below the $71,000 mark late Wednesday, reaching its lowest level since October 2024 as selling pressure intensified across global financial markets. The decline reflects a broader shift away from risk assets rather than a single crypto-specific trigger, according to market analysts.
The world’s largest cryptocurrency dropped 7.2% over the past 24 hours to trade around $70,894 as of 11:30 p.m. ET, data shows. Ethereum followed a similar path, falling 7.8% to roughly $2,091.
Market participants pointed to a combination of technical weakness and macroeconomic stress. Vincent Liu, chief investment officer at Kronos Research, said bitcoin’s attempted rebound failed to hold key support levels, triggering a wave of long liquidations. He added that losses in U.S. technology stocks and continued outflows from bitcoin exchange-traded funds added to the downward momentum.
The weakness extended beyond digital assets. Crypto-related stocks also came under pressure, with Coinbase shares closing down 6.14% and Ethereum-focused treasury firm Bitmine falling 9.17%. In traditional markets, the Nasdaq Composite slipped 1.51%, while the Dow Jones Industrial Average managed a modest gain of 0.53%, highlighting uneven sentiment among investors.
Risk-off sentiment dominates
Analysts say the current pullback is closely tied to a broader risk-off environment affecting multiple asset classes. Peter Chung, head of research at Presto Research, noted that crypto prices are largely mirroring the wider market mood. He said the recent sell-off pushed bitcoin to a new low for the year and dragged investor confidence to its weakest point since the last bear market.
That pessimism is reflected in the Crypto Fear & Greed Index, which currently stands at 12, firmly in “extreme fear” territory.
Despite the gloomy backdrop, some observers see reasons not to overreact. Chung argued that the negative sentiment may be masking longer-term potential, pointing out that much of the global investment community remains underexposed to digital assets. In his view, that lack of engagement could represent untapped demand over time.
Looking ahead, Liu said traders are watching closely to see whether bitcoin can hold above the psychologically important $70,000 level. Signs such as a slowdown in forced liquidations, stabilizing ETF flows, and gradual improvements in sentiment could indicate that selling pressure is beginning to ease.
