Bitcoin Drops Below $70,000 Amid Extreme Fear in Crypto and Metals

What to Know

• Bitcoin fell below $70,000 amid heightened selling pressure.
• Crypto and precious metals are experiencing extreme fear, with the Fear and Greed Index at 11.
• Gold has dropped below $4,900 per ounce, and silver under $79.
• U.S. equities show resilience, with the Nasdaq-100 ETF up in pre-market trading.
• Bitcoin-exposed companies, including MicroStrategy and miners, are facing extended losses.
• Technology ETFs may provide limited support due to historical correlation with Bitcoin.

Bitcoin (BTC) fell below the $70,000 level on Thursday morning as the crypto market experienced a wave of selling ahead of U.S. equity market openings. The largest cryptocurrency briefly tested $69,917, reflecting the fragile balance between forced liquidations and opportunistic buying. Investor sentiment has moved sharply into “extreme fear,” with the Crypto Fear and Greed Index plunging to 11, a rare reading that signals panic among traders.

While digital assets and precious metals remain under pressure, U.S. equities have shown resilience, highlighting a divergence between crypto markets and traditional stock indices.

Market Overview

Bitcoin’s decline was mirrored in precious metals, with gold slipping below $4,900 per ounce and silver falling under $79. Meanwhile, U.S. equities are slightly higher in pre-market trading. The Invesco QQQ exchange-traded fund, tracking the Nasdaq-100, is up 0.22%, reflecting continued confidence in tech stocks despite turbulence in risk assets like cryptocurrencies.

The sharp moves in Bitcoin stem from thin market liquidity and concentrated leveraged positions. Over the past 24 hours, crypto markets have seen significant forced selling, with large long positions liquidated and shorts partially offsetting losses. The imbalance between dip buyers and leveraged traders has intensified price swings, causing rapid downward moves followed by quick recoveries.

Bitcoin-Exposed Equities and Miners

Companies holding significant Bitcoin reserves are experiencing extended declines. MicroStrategy (MSTR), the largest publicly traded Bitcoin holder, has fallen more than 5% and is now nearly 80% below its November 2024 all-time high. Other treasury companies, including Strive (ASST) and Nakamoto (NAKA), are down around 6%.

Major cryptocurrency exchanges also show weakness, with Coinbase (COIN) declining 2% and rival Bullish down 0.4%. Bitcoin-linked AI miners are mixed: IREN (IREN) is down 3%, Cipher Mining (CIFR) is down 2%, and larger miners such as Riot (RIOT), MARA Holdings (MARA), and CleanSpark (CLSK) are roughly 3% lower.

Some support may emerge from technology ETFs, such as the iShares Expanded Tech Software ETF (IGV), which is modestly higher. Historically, this sector has shown correlation with Bitcoin price movements, though gains are unlikely to offset the broader market pressure.

Meanwhile, major tech companies like Google (GOOG) are slightly lower despite exceeding profit forecasts, as higher capital expenditure plans weigh on market sentiment.

Bitcoin Frequently Asked Questions (Q&A)

Why did Bitcoin drop below $70,000?

The drop was primarily driven by thin liquidity and forced selling. Leveraged positions amplified price movements, allowing BTC to briefly breach $70,000 before dip buyers stepped in.

How are U.S. equities reacting?

Equities remain resilient, with pre-market gains in the Nasdaq-100 ETF, demonstrating a divergence between crypto volatility and traditional markets.

What does the Fear and Greed Index at 11 indicate?

A reading of 11 reflects “extreme fear,” signaling panic among investors and heightened market risk in crypto and precious metals.

Are Bitcoin miners and treasury companies affected?

Yes. Companies with significant Bitcoin holdings, including MicroStrategy, Strive, Nakamoto, and major miners, have all seen notable declines, intensifying market pressure.

Could tech stocks help stabilize Bitcoin?

Technology ETFs like IGV may offer mild correlation-based support, but broader crypto market trends are likely to dominate BTC price movements in the short term.