Is Bitcoin’s fall below $70,000 proof that “Digital Gold” was a myth all along?

Bitcoin slipped below the psychological $70,000 mark early Thursday, hitting its lowest level in more than a year as turbulence in global stock markets spilled aggressively into the cryptocurrency space. The latest downturn underscores growing doubts about whether bitcoin can truly function as a safe haven during periods of heightened economic anxiety.

According to market data, the world’s largest cryptocurrency plunged to around $66,900, marking a steep decline of nearly 10% within 24 hours. This drop places bitcoin at its weakest point since November 2024 and deepens an already bruising start to the year for digital assets.

The selloff was not limited to bitcoin alone. Ethereum followed the same downward path, falling close to 10% to trade near $1,940, while XRP suffered an even sharper slide, losing roughly 17% of its value in a single session. The synchronized plunge across major cryptocurrencies highlights how closely the sector is moving in step with broader “risk-off” sentiment gripping financial markets.

Tech Stock Weakness Spills Into Crypto

The immediate trigger for the crypto downturn appears to be renewed weakness in U.S. equities—particularly technology stocks tied to artificial intelligence. Wall Street has grown increasingly uneasy about whether the massive AI-driven rally of the past year can be sustained.

The Nasdaq Composite dropped sharply after disappointing earnings and cautious outlooks from heavyweight firms such as Alphabet and Qualcomm. As investors pulled back from high-growth tech names, speculative assets like cryptocurrencies were caught in the crossfire.

Bitcoin, which many advocates have long promoted as “digital gold,” has struggled to live up to that label. Since the start of January, the asset is down roughly 24%, and it has now shed about 47% from its record high of over $126,000 reached in October 2025.

Why Bitcoin Isn’t Acting Like a Safe Haven

Historically, periods of geopolitical tension and market fear tend to boost assets perceived as stores of value. This year has delivered plenty of reasons for investors to seek shelter: escalating geopolitical threats, trade tensions, and rapid advances in artificial intelligence that are unsettling traditional industries.

Yet while gold has surged—recently pushing beyond $5,500 per ounce—bitcoin has moved in the opposite direction. The contrast has been striking. Gold is up more than 20% since October, while bitcoin has lost more than 40% over the same period.

Market observers say this divergence is reinforcing skepticism around bitcoin’s role as a defensive asset. Rather than serving as a refuge, crypto appears to be treated like a high-risk investment that traders rush to sell when fear takes hold.

Warnings From Analysts and Policymakers

Some analysts are growing increasingly cautious. Stifel strategist Barry Bannister has suggested that, based on historical bear-market patterns, bitcoin could fall as low as $38,000 this year—a potential 70% drop from its peak.

Meanwhile, prominent investor Michael Burry, famous for predicting the 2008 financial crisis, has cast doubt on bitcoin’s long-term resilience. In recent commentary, he argued that there is little organic demand strong enough to halt bitcoin’s decline once momentum turns negative.

Policy signals have not helped sentiment either. U.S. Treasury Secretary Scott Bessent recently told lawmakers that the government lacks the authority to intervene or stabilize cryptocurrency markets, effectively removing hopes of an official backstop.

The Vanishing “Trump Bump” and ETF Disappointment

Bitcoin’s slump has also erased gains fueled by optimism following Donald Trump’s election victory in late 2024. Crypto markets initially rallied on expectations of looser regulations, but those hopes have faded as economic uncertainty has intensified.

Additionally, bitcoin exchange-traded funds (ETFs) have not attracted the level of sustained institutional inflows many bulls had anticipated. Lower trading volumes and reduced participation from large investors have made price swings more extreme.

A Familiar Crypto Cycle?

Despite the gloom, long-time crypto watchers note that steep crashes are nothing new. Bitcoin has endured multiple brutal downturns over the past decade—from the Mt. Gox collapse in 2014 to the ICO crash of 2018 and the FTX-driven fallout in 2022.

In each case, the cryptocurrency eventually rebounded within 12 to 18 months. Whether this cycle follows the same script remains uncertain, but history suggests that volatility is simply part of bitcoin’s DNA.

Frequently Asked Questions (FAQ)

Why did Bitcoin fall below $70,000?
Bitcoin dropped as investors sold off risky assets amid tech stock declines, AI-related fears, and broader market uncertainty.

Is Bitcoin still considered digital gold?
Many investors are questioning that narrative, especially as gold rises while bitcoin continues to fall during periods of fear.

How much has Bitcoin fallen from its peak?
Bitcoin is down roughly 47% from its all-time high reached in October 2025.

Could Bitcoin fall further?
Some analysts believe bitcoin could decline toward $38,000 if bearish market conditions persist.

Has Bitcoin recovered from crashes before?
Yes. Historically, bitcoin has rebounded from major crashes within one to two years.