Crypto Slumps as Risk-Off Trade Leaves Digital Assets Lagging

Cryptocurrencies again underperformed on Thursday, remaining near session lows even as traditional markets recovered from steep intraday losses.

What began as modest overnight weakness accelerated during U.S. trading hours, with the Nasdaq sliding more than 2% at its worst and gold falling nearly 10% from an overnight record. Both markets later rebounded—the Nasdaq closed down just 0.7% and gold climbed back above $5,400 an ounce—but crypto prices failed to follow.

Bitcoin was trading just above $84,000 at press time, down nearly 6% over the past 24 hours and testing the lower end of its two-month trading range. A decisive break below that level could open the door to a deeper correction, analysts warned.

Losses were broad across the sector. Ethereum, Solana, XRP, and Dogecoin were all down around 7% on the day, while crypto-linked equities also came under pressure. Shares of Coinbase (COIN), Circle (CRCL), and bitcoin treasury firm Strategy (MSTR) declined between 5% and 10%.

Matt Mena, crypto research strategist at 21Shares, said Bitcoin holding the $84,000 level is “critical.” If that support fails, he sees downside risk toward $80,000—where buyers emerged in November—and potentially the $75,000 lows recorded during the April 2025 tariff-driven selloff.

Despite the weakness, Mena described current levels as a “compelling entry point,” maintaining his view that Bitcoin could reach $100,000 by the end of the first quarter and possibly push toward $128,000 if macroeconomic conditions turn supportive.

Other analysts were more cautious. John Glover, chief investment officer at bitcoin lender Ledn, said the selloff appears to be part of a broader correction from October’s record highs and could ultimately pull Bitcoin down to around $71,000, roughly 43% below its early-October peak near $126,000.

Glover added that uncertainty tied to the U.S. outlook is driving investors toward alternative havens such as gold and the Swiss franc rather than traditional safe assets like the dollar or Treasuries. While Bitcoin is often positioned as “digital gold,” he said it continues to trade like a risk asset, moving in step with equities.

Still, Glover expects the downturn to be temporary. “I believe this is a transitional phase and that we’ll see a rebound in Bitcoin prices over the coming quarters,” he said.

Not all observers share that optimism. “Most key technical levels have been taken out on the downside, and there’s limited support here,” said Russell Thompson, chief investment officer at Hilbert Group, who warned Bitcoin could slide as low as $70,000. “The Clarity markup is constructive longer term, but near term this remains a broad risk-off move.”