Bitcoin dropped below the $69,000 mark on Thursday, reflecting a broader risk-off sentiment across global markets. Early hopes that tensions between Iran and the US would ease proved fleeting, causing many market participants to adopt a more cautious approach once again.
Cryptocurrencies and Altcoins Feel the Pressure
Over the past 24 hours, Bitcoin depreciated by approximately 3%, falling notably from the $71,000 peak reached overnight. This retreat was mirrored across the crypto landscape, with major altcoins like Ether, XRP, Solana, and Cardano shedding between 4% and 5% of their value.
Meanwhile, oil markets remained volatile, driven by persistent uncertainties over potential conflict in the Middle East. Crude futures rebounded, climbing nearly 4% from earlier losses. This uptick raised concerns over inflation and the risk of further disruptions to global supply chains.
On Wall Street, the sell-off deepened, particularly in the technology sector. The Nasdaq retreated by 1.4%, while bond yields also rose. The yield on the US 10-year Treasury increased to 4.40%, and German 10-year bunds climbed to 3.06%.
Tech and Crypto-Linked Stocks See Sharp Losses
Tech heavyweights experienced double-digit losses from their recent highs, underlining the scale of the current pullback. NVIDIA shares dropped 18%; Meta lost 30%; Amazon slid 20%; Alphabet slipped 19%; Microsoft fell by 34%; Tesla by 25%; and Apple saw a 14% decline.
The sell-off also hit companies closely tied to crypto. Shares of Coinbase, Circle, and Michael Saylor’s software enterprise fell between 3% and 4% as risk sentiment faded.
The steepest declines, however, were recorded in firms shifting from bitcoin mining to artificial intelligence infrastructure services. Hut 8 shares lost 8.6%, while IREN and Riot Platforms both posted losses exceeding 7%. TeraWulf and HIVE Digital also experienced noticeable drops.
WhiteFiber’s fourth-quarter results reflected mounting losses, as its net loss widened to $1.5 million for the period, bringing its total annual deficit to $24.7 million. Parent company Bit Digital’s shares also slumped, down nearly 8%.
LMAX Group market strategist Joel Kruger highlighted that, in the short term, macroeconomic developments will continue to dictate asset prices. He noted that if international tensions subside, riskier assets could regain their footing, whereas lingering uncertainty may lead to choppy, sideways trading conditions.
Despite widespread red ink, some outliers bucked the trend. Shares in MARA Holdings rose 8.7% after the company used proceeds from recent bitcoin sales to pay down its debts, defying the general market downturn.
