Bitcoin Collapses: Falls Below $62,000, Down 50% in Just Four Months
Among altcoins, XRP leads the losses with a 22% daily drop, followed by Solana (-14.3%) and Dogecoin (-14%).
Quick overview
- Bitcoin has erased all gains since November 2024, dropping below $65,000 amid a challenging macroeconomic environment.
- The cryptocurrency is down approximately 50% from its all-time high of $126,000, reflecting a significant selloff in risk assets.
- Bitcoin's decline is closely tied to the broader correction in the Nasdaq and rising geopolitical tensions with Iran.
- Uncertainty surrounding the Federal Reserve's future leadership adds to market caution, impacting investor sentiment.
The leading cryptocurrency has wiped out all gains accumulated since November 2024. The Nasdaq’s correction, uncertainty surrounding the Federal Reserve, and rising tensions with Iran have deepened risk aversion across global markets.
Bitcoin (BTC) broke below the $65,000 mark on Wednesday, returning to levels last seen before U.S. President Donald Trump’s victory in the presidential election.
With this drop, the cryptocurrency has fully erased the bullish momentum sparked by the Republican win in early November 2024. In fact, Bitcoin is now down roughly 50% from its recent all-time high of $126,000, reached just four months ago.
The selloff comes amid a challenging macroeconomic backdrop for risk assets and marks a turning point for a market that had priced in a more supportive political and monetary environment for digital currencies.
Bitcoin is down 12% on Thursday, trading around $64,000. Ethereum (ETH) is also under heavy pressure, falling 12.4% to $1,902 and posting a 42% decline over the past 30 days. Among altcoins, XRP leads the losses with a 22% daily drop, followed by Solana (-14.3%) and Dogecoin (-14%).
Correlation With Wall Street
Bitcoin’s downward move comes amid strong synchronization with the U.S. technology sector, which is undergoing a broad correction. The selloff intensified alongside losses in the Nasdaq 100, which fell more than 1.5% after a wave of selling hit chipmakers and software companies.
In this risk-off environment, Bitcoin extended its negative trend, moving largely in step with the punishment meted out to tech stocks.
Adding to the pressure are escalating geopolitical tensions between the United States and Iran, with reports pointing to the possibility of a military escalation. Such uncertainty typically reinforces defensive investor behavior, leading to reduced exposure to volatile assets.
Fed Uncertainty
Another key source of uncertainty is the future leadership of the Federal Reserve. Kevin Warsh, one of the names rumored to be in contention for the Fed chairmanship, is known for his favorable stance toward Bitcoin and for partially aligning with Trump’s preference for lower interest rates.
However, Warsh’s track record also includes support for restrictive monetary policy, raising questions about the direction he would take if appointed. This ambiguity has further fueled short-term market caution.
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