Bitcoin briefly fell below the $70,000 mark on Thursday before recovering slightly, as selling pressure intensified across risk assets. While the drop was relatively shallow in price terms, it underlined growing uncertainty across global markets – with crypto, stocks, and commodities all facing mounting headwinds.
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Broader Market Stress Takes Hold
The weakness in crypto mainly reflects a larger shift in risk appetite. U.S. stock markets opened lower again, with tech names leading the way down. A fresh round of large-scale layoffs – the highest January total since 2009 – reinforced concerns about the 2026 economic outlook. Companies across sectors have begun trimming headcount aggressively, and jobless claims rose well above forecasts.
This pressure has been compounded by a wave of uncertainty around corporate earnings, AI-related spending plans, and weakening consumer demand. Heavyweights like Alphabet are ramping up investment, but at the cost of near-term margins – unsettling investors already worried about profitability and liquidity.
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Policy Comments Stir Uncertainty
The situation for crypto also partially stems from comments from U.S. Treasury Secretary Scott Bessent, who clarified that the government does not have authority to support or back crypto markets – nor direct banks to do so. While the statement reflected existing policy, the timing added to already fragile sentiment.
Investors hoping for a softer regulatory stance under the Trump administration may now need to reset expectations. The narrative of Bitcoin as an asset shielded from government interference remains intact – but it also means that no official support is likely if the broader selloff deepens.
