Crypto markets sharply underperformed traditional assets on Thursday, extending losses even as equities and gold staged partial recoveries. What began as modest overnight declines accelerated into a major selloff during U.S. trading hours, highlighting ongoing weakness across digital assets. Bitcoin fell nearly 6% over the past 24 hours and was trading just above $84,000 at press time, hovering dangerously close to the lower end of its two-month trading range. A breakdown below this level could signal a deeper correction for the world’s largest cryptocurrency.
The broader market backdrop was turbulent. The Nasdaq dropped more than 2% earlier in the session before recovering to close down just 0.7%, while gold plunged almost 10% from a fresh overnight record before rebounding above the $5,400 per ounce mark. Unlike stocks and precious metals, however, crypto prices failed to mount a meaningful bounce and remained near session lows throughout the afternoon.
Major altcoins followed bitcoin lower. Ethereum, Solana, XRP, and Dogecoin were all down roughly 7% over the same 24-hour period, reflecting widespread risk aversion in the crypto market. Crypto-related equities also struggled, with Coinbase, Circle, and bitcoin treasury firm Strategy posting losses ranging from 5% to 10%.
Analysts remain divided on what comes next for bitcoin. Matt Mena, crypto research strategist at 21Shares, said holding above the $84,000 support level is critical. If that level breaks, he sees $80,000 as the next key area of demand, followed by potential support near $75,000, a level tested during the April 2025 tariff-driven selloff. Despite near-term weakness, Mena believes current prices represent a compelling entry point and maintains a bullish outlook, projecting bitcoin could reach $100,000 by the end of the first quarter and potentially climb to $128,000 if macroeconomic conditions improve.
Other market watchers are more cautious. John Glover, CIO at Ledn, views the selloff as part of a broader correction from October’s record highs and warned bitcoin could slide toward $71,000. He noted that investors are currently favoring traditional safe havens such as gold and the Swiss franc, while bitcoin continues to trade like a risk asset alongside equities. Russell Thompson of Hilbert Group echoed the bearish sentiment, suggesting technical support has weakened and a drop toward $70,000 remains possible, even as longer-term fundamentals stay constructive.
