Crypto prices took another hit on Thursday, following the broader risk-off move on Wall Street. Bitcoin dropped below $66,000, shedding around 2.5% over the day, while Ethereum slipped back under the $2,000 level. Other major cryptocurrencies also turned red, with Solana falling under $80 and XRP sliding to $1.36. Total crypto market cap now stands at $2.26 trillion.
Read also: 6 Reasons Why Crypto Is More Volatile Than Other Assets
Tech Fallout and Rate Jitters
The latest drop wasn’t caused by crypto-specific news, although the sentiment was fearful to begin with. Instead, it followed renewed volatility across traditional markets, especially tech stocks. US indices plunged, with the Nasdaq down over 2%, as investors reacted to rising fears of AI-driven disruption in sectors like software, logistics, and real estate. At the same time, Friday’s upcoming inflation report kept rate cut expectations in check, adding to the risk-off mood.
Bitcoin and gold both declined in parallel – an unusual move given their often opposite reactions in such moments. That divergence caused some discussion about whether Bitcoin is still seen as a digital store of value, or if it’s now just trading in line with risk assets.
Read also: How to Invest in Gold: From Coins and Bars to Crypto Tokens
Sentiment Remains Fragile
The drop pushed funding rates for Bitcoin futures deep into negative territory, suggesting a crowded short trade and very strong bearish pressure. While this could signal exhaustion and increase the odds of a short squeeze, liquidity data and on-chain indicators don’t yet show signs of a strong reversal.
Bitcoin’s four-day decline and struggle to reclaim $70,000 is feeding further frustration, especially after a stretch of optimistic accumulation. It remains to be seen whether BTC can hold above $64,000 to prevent another leg lower.
