Amid broad traditional market declines, crypto was once again the standout underperformer on Thursday.
Modest declines in crypto overnight turned into a major rout in the morning in the US, as the Nasdaq fell more than 2% and gold tumbled nearly 10% from an overnight record. But while both of these markets managed significant afternoon bounces – the Nasdaq closes down just 0.7% and gold regains the $5,400 level. Bitcoin was trading just above $84,000 at press time. With a loss of nearly 6% over the past 24 hours, bitcoin is on the verge of breaking below its two-month range, which could be a prelude to an even deeper pullback.
Other cryptos and related assets showed similar declines. Ethereum solana XRP and were all about 7% lower over the past 24-hour period, while crypto exchange Coinbase (COIN), stablecoin issuer Circle (CRCL), and bitcoin tax firm Strategy (MSTR) suffered 5%-10% losses.
What’s next for bitcoin
Matt Mena, crypto research strategist at 21Shares, said it is “critical” for bitcoin to hold above the $84,000 support level. If that fails, he said, the next target is $80,000, where buyers stepped in in November, and below that comes the $75,000 low-cost cabin during the April 2025 tariff period.
Still, current prices offer a “compelling entry point,” Mena said. He still expects bitcoin to hit $100,000 by the end of the first quarter, or even push to a new record of $128,000 if macroeconomic conditions allow.
Other analysts warned of a deeper setback on the horizon.
John Glover, CIO of bitcoin lender Ledn, argued that today’s selloff is part of bitcoin’s broader correction from October’s record highs. The move could ultimately drag BTC to $71,000, down 43% from the early October level of $126,000.
With the U.S. a key source of current market uncertainty, Glover argued, investors prefer alternative safe 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 risky asset and traded with 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 recovery in BTC prices in the coming quarters,” he concluded.
“The technical levels have all been taken out to the downside and I don’t see a lot of support here for bitcoin,” said Russell Thompson, chief investment officer at Hilbert Group. He also believes bitcoin could fall as low as $70,000. “The Clarity tick coming out of the range is bullish, but there’s really just a general risk feature here.”
