Amid broad traditional market declines, cryptocurrencies once again performed the worst on Thursday.
Modest overnight declines in cryptocurrencies turned into a big drop in the US morning, when the Nasdaq lost more than 2% and gold fell almost 10% from an overnight record. But while both markets managed considerable rebounds in the afternoon (the Nasdaq closed down just 0.7% and gold regained the $5,400 per ounce level), bitcoin and the rest of the cryptocurrencies remained not far from the session’s lows. Bitcoin was trading just above $84,000 at the time of this publication. Losing almost 6% in the last 24 hours, Bitcoin is about to fall below its two-month range, which could be the prelude to an even deeper pullback.
Other cryptocurrencies and related assets showed similar declines. Ethereum solarium XRP and were all about 7% lower over the last 24-hour period, while cryptocurrency exchange Coinbase (COIN), stablecoin issuer Circle (CRCL), and bitcoin treasury firm Strategy (MSTR) suffered losses of between 5% and 10%.
What’s next for bitcoin?
Matt Mena, cryptocurrency research strategist at 21Shares, said staying above the $84,000 support level is “critical” for bitcoin. If that fails, he said, the next target is $80,000, the level at which buyers intervened in November, and below that are the lows of $75,000 recorded during the April 2025 tariff tantrum.
Still, current prices offer a “compelling entry point,” Mena said. He still expects bitcoin to reach $100,000 by the end of the first quarter, or even hit a new record high of $128,000 if macroeconomic conditions allow.
Other analysts warned of a deeper pullback on the horizon.
John Glover, CIO of bitcoin lender Ledn, argued that today’s sell-off is part of bitcoin’s broader correction since October’s all-time highs. The move could ultimately drag BTC to $71,000, a 43% decline from the early October level of $126,000.
With the United States being a key source of current market uncertainty, Glover argued, investors are preferring alternative havens like gold and the Swiss franc to traditional safe assets like the U.S. dollar and Treasuries. While many expected Bitcoin to act as “digital gold,” it is still treated as a risk asset and sold alongside stocks, he said.
Like Mena, Glover believes the current difficulties will not last. “I think this is a somewhat temporary situation and we will see a rebound in BTC prices in the coming quarters,” he concluded.
“All the technical levels have been cleared to the downside, and I don’t see much support here for bitcoin,” said Russell Thompson, chief investment officer at Hilbert Group. He also believes that bitcoin could fall to $70,000. “The Clarity profit margin coming out of the committee is bullish, but there’s actually an overall risk-on move here.”
