Bitcoin has taken a significant hit, dropping below $70,000 for the first time since November 2024. This loss erased all the gains it accumulated since Donald Trump was re-elected as US president. It tumbled 7% to just under $68,000 amid a tech stock sell-off, marking a 20% decline in value this year.
“Overall sentiment is declining rapidly,” said Jasper De Maere, a strategist at Wintermute. “There seems to be little interest in buying at these levels.”
Ether, the second-largest cryptocurrency, fell 8% to $1,960, which translates to a staggering 34% loss this year.
Bitcoin’s rise followed Trump’s promise to make the US the “crypto capital of the world” and reduce regulatory pressures on the industry. However, this enthusiasm has faded. The crypto market is now feeling the weight of stalled legislation and investor shifts toward more stable assets like gold and silver. Recent statistics show record increases in gold prices, as investors look for safer bets.
This week’s downturn was further fueled by anxiety over AI’s influence on tech companies. Even Michael Saylor’s company, which heavily invests in Bitcoin, saw its shares drop 12% on Thursday, down over 25% for the year. Saylor had purchased an impressive 713,502 bitcoins at an average price of $76,052, resulting in substantial unrealized losses.
On social media, Saylor posted “HODL”—a term that encourages investors to hold onto their assets despite price drops. His company is poised to release earnings results soon.
In a sign of the tough climate, the crypto exchange Gemini, co-founded by the Winklevoss twins, announced it would lay off 200 employees and close parts of its business to save costs. Shares in Gemini have plummeted 80% since going public in September.
Interestingly, traders on the prediction market Kalshi are widely betting that Bitcoin could fall below $60,000, with about 85% believing this scenario is likely.
In the evolving cryptocurrency landscape, keeping an eye on market trends and shifts in investor sentiment is crucial. As the situation unfolds, many are left wondering what the future holds for Bitcoin and other digital currencies.
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