Bitcoin and US equities declined amid rising US-Iran tensions, failing to act as safe havens unlike gold and silver. This selloff, wiping out nearly half a trillion dollars from crypto markets, has fueled doubts about Bitcoin’s ‘digital gold’ status. Investor sentiment has shifted to extreme fear as Bitcoin hit a 15-month low.
The declines follow a volatile week across global markets that also saw sharp swings in gold and silver. While precious metals found buyers on Tuesday after recent losses, cryptocurrencies failed to attract support. Bitcoin and US equities fell as rising tensions between the US and Iran prompted investors to seek safe assets.
Bitcoin’s plunge is raising doubts that it functions as a kind of “digital gold,” as it hasn’t acted as a safe haven during a period of heightened geopolitical uncertainty. Investor Michael Burry this week warned that Bitcoin has been exposed as a purely speculative asset, failing to establish itself as a hedge similar to precious metals.
Historically, there’s been a “tremendous amount” of near-religious belief in holding on to Bitcoin no matter what, Michael Novogratz, chief executive officer of Galaxy Digital LP, said on an earnings call. “And somehow that virus or that fever broke, and you started seeing some selling.”
Almost half a trillion dollars has been wiped off cryptocurrencies in less than a week as a selloff led by Bitcoin accelerated.
Total crypto market value has slumped by $467.6 billion since Jan. 29, according to CoinGecko data. Bitcoin on Tuesday tumbled to its lowest level since US President Donald Trump won re-election in early November 2024 and ushered in a more crypto-friendly administration.
The original cryptocurrency, which hit a 15-month low of $72,877 in the US, regained some ground in Asia Wednesday, trading at $76,200 at 10 a.m. in Singapore. It is down 13% this year and 39% from its Oct. 6 peak above $126,000.
“Asia morning sentiment is cautious and defensive. The mood is still risk‑off, but the pace of forced selling has slowed compared with the US close,” said Rachael Lucas, an analyst at BTC Markets. Still, “Bitcoin printing sub‑$73,000 has pushed sentiment into extreme fear,” she said.
The declines follow a volatile week across global markets that also saw sharp swings in gold and silver. While precious metals found buyers on Tuesday after recent losses, cryptocurrencies failed to attract support. Bitcoin and US equities fell as rising tensions between the US and Iran prompted investors to seek safe assets.
Bitcoin’s plunge is raising doubts that it functions as a kind of “digital gold,” as it hasn’t acted as a safe haven during a period of heightened geopolitical uncertainty. Investor Michael Burry this week warned that Bitcoin has been exposed as a purely speculative asset, failing to establish itself as a hedge similar to precious metals.
Historically, there’s been a “tremendous amount” of near-religious belief in holding on to Bitcoin no matter what, Michael Novogratz, chief executive officer of Galaxy Digital LP, said on an earnings call. “And somehow that virus or that fever broke, and you started seeing some selling.”
