Bitcoin has suffered a steep two-day drop, brushing the $72,000 barrier during Wednesday’s session as selling pressure intensified.
Its value tumbled to $72,096.20 at one point, shedding over 5 per cent in the process. Trading later steadied around $72,958.38, still reflecting a 4 per cent daily decline. From its October peak near $126,000, bitcoin now languishes more than 40 per cent lower.
Tuesday marked the first breach below $73,000 in about 16 months, echoing pre-election levels. A Citi note to clients that day warned that $70,000 is a key level to watch should the weakness persist.
Geopolitical strains and economic hurdles underpin the rout. Investors have dumped risky holdings amid U.S.-Europe clashes over President Donald Trump’s Greenland push, compounded by a partial government shutdown that stalled key data releases.
Trump’s nomination of Kevin Warsh for Fed chair late last month has fuelled bets on tighter monetary policy, while U.S. efforts to ease crypto rules appear to be losing steam.
Deutsche Bank analysts link the price slide to dwindling liquidity from big institutional exits, braced for worse to come. Spot bitcoin exchange-traded funds have haemorrhaged funds since October’s leveraged blow-ups—over $3 billion in January alone, $2 billion in December and $7 billion the month before.
The fallout spread to linked shares. Bitcoin treasury holder Strategy, lost 5 per cent, with miners Riot Platforms and MARA Holdings each plunging nearly 11 per cent.