Bitcoin dropped below US$85,000 on Thursday for the first time in two months, slumping as much as 6.8 per cent to US$83,240. Bitcoin can’t catch a break these days. Bitcoin is falling with precious metals in a broad risk-off trade, reaffirming its status as leveraged beta to risk assets. Smaller digital assets fell more, with Ether, Doge, Cardano and Solana all down at least 7 per cent or more.
More than US$1 billion in leveraged positions have been wiped out. The latest plunge follows a downturn that has lasted since early October. Bitcoin prices had remained stagnant even when tech shares and precious metals such as gold and silver rallied in recent weeks.
“Today’s weakness underscores crypto’s persistent role as leveraged beta to traditional risk assets, with digital markets amplifying the broader risk-off tone as equities – particularly tech – continue to face pressure.” “Liquidations in crypto assets are accelerating amid the sharp drop with over US$1 billion worth of digital assets wiped out over the last 24 hours with US$923 million and US$120 million in long and bearish positions, respectively, according to data compiled by Coinglass.” Derivatives positioning remains defensive. Open interest for Bitcoin futures contracts on CME is hovering around yearly lows, while perpetual futures funding rates, a key measure of market sentiment, sits near neutral, signaling limited speculative conviction.
The slide weighed on the shares of companies in the crypto sector. Digital exchange Coinbase Global declined more than 6 per cent, Bitcoin accumulator Strategy tumbled 11 per cent and miner MARA Holdings slumped more than 6 per cent. The company holds around 140 tonnes of gold, according to Ardoino, most of which are its own reserves, along with the bullion backing its own gold token. The move marks the return of Tether to the US market, having stated that it stopped allowing US customers to buy or redeem its tokens directly with the issuer in 2018.
Each Tether-issued US dollar token is intended to represent one US dollar held in reserve. Tether returns to US market with launch of USAT stablecoin. Tether says it bought 27 tonnes of gold in fourth quarter.
The largest cryptocurrency slipped as much as 4.7 per cent to US$85,105, the lowest price since Dec 19. The move comes amid a broader risk-off environment, with bitcoin acting as leveraged beta to traditional assets as tech stocks and precious metals retreat. The decline marks the lowest price since November 21 and follows a period of stagnation despite rallies in other markets.
More than $1 billion in leveraged positions were wiped out in the last 24 hours, according to data compiled by Coinglass. Open interest for Bitcoin futures on CME sits near yearly lows, and perpetual futures funding rates remain near neutral, indicating limited speculative conviction despite the drop. The slide also weighed on sector equities, with companies like Coinbase, Strategy, and MARA Holdings among those hit by the move.
Analysts say the current weakness underscores crypto’s role as a barometer for broader market risk, amplifying the risk-off tone as equities, especially tech, face pressure.
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