Bitcoin trades at $84,000, with downside risk looming toward $70,000

The Bitcoin drop on Thursday demonstrated that, in spite of expectations that it will serve as a macro hedge, btc still behaves like the riskiest asset when markets slump.

Crypto was once again the most notable underperformer on Thursday amid widespread drops in traditional markets.

The Nasdaq dropped more than 2% and gold fell over 10% from an overnight high in the U.S. morning, turning modest overnight declines in cryptocurrency into a significant meltdown.

However, btc and the rest of cryptocurrency stuck close to session lows, despite both of those sectors managing significant afternoon bounces, with the Nasdaq closing with a little 0.7% fall and gold reclaiming the $5,400 per ounce level.

Bitcoin trades at $84,000

At the time of publication, Btc was trading little over $84,000. Bitcoin is on the verge of falling below its two-month range after losing about 6% in the last day. This could be a sign of an even more severe decline.

Similar drops were seen in other cryptocurrencies and associated assets. Over the past 24 hours, Ethereum ETH $2,729.68, Solana SOL $117.37, XRP XRP $1.7704, and DOGE $0.1165 were all about 7% lower, while cryptocurrency exchange Coinbase (COIN), stablecoin issuer Circle (CRCL), and bitcoin treasury company Strategy (MSTR) lost between 5% and 10%.

The selloff today, according to John Glover, CIO of bitcoin lender Ledn, is a part of a larger correction from the record highs set in October. In the end, the move might push Bitcoin down $71,000, a 43% drop from its early October peak of $126,000.

Glover contended that investors are choosing alternative havens like gold and the Swiss franc over conventional safe assets like the U.S. dollar and Treasuries since the U.S. is a major source of present market volatility. According to him, although many anticipated that bitcoin will function as “digital gold,” it is still viewed as a risky investment and sold alongside stocks.