Bitcoin Falls to 15-Month Low Amid Global Selloff

 

Bitcoin, the world’s largest cryptocurrency, plunged to its lowest levels in roughly 15 months this week, extending a broad risk-asset selloff that has rippled across global markets. The benchmark digital asset briefly dipped below $73,000, a level last seen in November 2024, before a modest rebound put prices back above the mid-$70,000 range.

Market Turmoil Fuels Sharp Decline

The recent downturn has been driven by a confluence of factors that have spooked investors across asset classes:

• Risk-off sentiment in global markets has spread from equities to cryptocurrencies, with Bitcoin’s price slide contributing to a nearly $500 billion wipeout in overall crypto market value in just a few days.

• Heavily leveraged trading and liquidations have amplified the selloff, as falling prices triggered margin calls and forced unwinding of long positions.

• Broader macroeconomic uncertainty — including concerns about tighter monetary policy following the nomination of a new U.S. Federal Reserve chair — has dampened appetite for risky assets, including Bitcoin.

Technical and Sentiment Pressures Intensify

Analysts point out that Bitcoin’s drop below key support levels has heightened technical selling pressure. Some traders now caution that the next significant test for the market could be the $70,000 region, which, if breached, might fuel further downside momentum.

Investor sentiment has also taken a hit. Noted investor Michael Burry — known for his prescient bets against the U.S. housing market before the 2008 financial crisis — published a warning this week about the potential for deeper weakness in Bitcoin and broader contagion effects if the selloff persists.

Institutional and Market Impacts

The broader crypto ecosystem hasn’t been immune:

• Liquidations have hit institutional products such as Bitcoin ETFs, with net outflows reflecting waning demand from larger investors.

• Some corporate holders with significant Bitcoin exposure have seen their market values slip below their average purchase prices, underscoring the pain felt by even long-term holders.

Short-Term Outlook: Cautious and Volatile

Despite the sharp selloff, some analysts point to signs of stabilization as Bitcoin finds intermittent support and rebounds off its lows. However, the near-term picture remains uncertain. Traders and investors are watching macroeconomic data releases, equity market performance, and liquidity conditions closely for clues on whether the digital-asset slump has run its course or is poised to continue.

For now, Bitcoin’s journey back toward recent highs looks challenging, and the broader cryptocurrency market’s performance will likely remain tethered to shifts in global risk sentiment and financial conditions.