Bitcoin holds $84,000 for now, with analysts flagging $70,000 downside risk.

Crypto Extends Losses as Risk-Off Trade Leaves Digital Assets Behind

Cryptocurrencies deepened losses on Thursday, once again underperforming traditional markets as risk-off sentiment gripped global assets.

Early, modest declines accelerated sharply during U.S. trading hours. The Nasdaq fell more than 2% at its lows, while gold slid nearly 10% from an overnight record. Both markets later staged strong recoveries—the Nasdaq closing down just 0.7% and gold reclaiming the $5,400-per-ounce level—but crypto failed to participate in the rebound.

Bitcoin was trading just above $84,000 at press time, down nearly 6% over the past 24 hours and pressing the lower boundary of its two-month trading range. A break below that level could mark the start of a deeper correction, according to analysts.

Weakness was broad across digital assets. Ethereum, Solana, XRP, and Dogecoin each fell around 7% on the day. Crypto-linked equities also declined, with Coinbase (COIN), Circle (CRCL), and bitcoin treasury firm Strategy (MSTR) posting losses of between 5% and 10%.

Matt Mena, crypto research strategist at 21Shares, said holding the $84,000 level is “critical” for Bitcoin. If that support gives way, he expects a move toward $80,000—where buyers stepped in during November—followed by the $75,000 lows seen during the April 2025 tariff-related selloff.

Despite the selloff, Mena described current levels as an attractive entry point, reiterating his expectation that Bitcoin could reach $100,000 by the end of the first quarter and potentially rise to $128,000 if macroeconomic conditions improve.

Other analysts struck a more cautious tone. John Glover, chief investment officer at bitcoin lender Ledn, said the decline appears to be part of a broader correction from October’s record highs and could eventually push Bitcoin down to around $71,000—roughly 43% below its early-October peak near $126,000.

Glover added that ongoing U.S.-driven uncertainty is pushing investors toward alternative havens such as gold and the Swiss franc rather than traditional safe assets like the U.S. dollar or Treasuries. While Bitcoin is often pitched as “digital gold,” he said it continues to trade like a risk asset, moving in step with equities.

Still, Glover expects the pressure to ease over time. “I believe this is a temporary phase and that we’ll see a rebound in Bitcoin prices in the coming quarters,” he said.

More bearish views persist. “Most key technical levels have already been broken on the downside, and there’s little support left,” said Russell Thompson, chief investment officer at Hilbert Group, who warned Bitcoin could fall as low as $70,000. “The Clarity markup is constructive longer term, but for now this is simply a broad risk-off move.”