Cryptocurrencies underperformed again on Thursday amid widespread losses in traditional markets.
Small losses in cryptocurrencies overnight turned into big losses in early U.S. trading, with the Nasdaq down more than 2% and gold down nearly 10% from its overnight record. But while both markets saw sharp rebounds in the afternoon, with the Nasdaq closing just 0.7% lower and gold regaining $5,400 an ounce, Bitcoin and other cryptocurrencies are still within striking distance of their intraday lows. At press time, Bitcoin was trading at just over $84,000. Bitcoin has fallen nearly 6% in the past 24 hours and is on the verge of breaking below a two-month range, which could be the precursor to a further pullback.
Other cryptocurrencies and related assets have seen similar declines. Ethereum Solana Ripple and each down around 7% in the past 24 hours, while cryptocurrency exchange Coinbase (COIN), stablecoin issuer Circle (CRCL) and Bitcoin finance company Strategy (MSTR) suffered losses of 5%-10%.
What’s next for Bitcoin?
Matt Mena, cryptocurrency research strategist at 21Shares, said that staying above the $84,000 support is “critical” for Bitcoin. If that fails, the next target is $80,000, with buyers stepping in in November, below which is the $75,000 low during the tariff riots in April 2025, he said.
Mena said current prices still provide a “compelling entry point.” He still expects the Bitcoin price to reach $100,000 by the end of the first quarter, and even break a new record of $128,000 if macroeconomic conditions allow.
Other analysts warned that a more severe pullback was coming.
John Glover, chief information officer of Bitcoin lender Ledn, believes today’s sell-off is part of Bitcoin’s broader pullback since its all-time high in October. The move could eventually drag BTC to $71,000, a 43% drop from early October’s $126,000 levels.
Glover believes that with the United States being the main source of current market uncertainty, investors are favoring alternative safe havens such as gold and the Swiss franc over traditional safe assets such as the U.S. dollar and Treasury bonds. He said that while many expected Bitcoin to act as “digital gold,” it was still viewed as a risk asset and sold off along with stocks.
Like Mena, Glover is confident the current difficulties won’t last. “I do believe this is a temporary situation and we will see Bitcoin prices rebound in the coming quarters,” he concluded.
Russell Thompson, chief investment officer of Hilbert Group, said: “The technical level is all down, and I don’t think Bitcoin has much support.” He also believes that Bitcoin may fall to $70,000. “The clarity given by the committee on markups is bullish, but it’s really just a general risk move here.”
