NEW YORK — Bitcoin has fallen to its lowest levels since 2024, sliding to nearly $72,000 on Tuesday before recovering modestly. The sharp decline has rattled crypto markets, with analysts at Citigroup now identifying $70,000 as the next critical support level for the world’s largest cryptocurrency.
Some traders on X (formerly Twitter) believe bitcoin could hold above $69,420, a symbolic price point that has gained cultural significance among crypto investors. Still, sentiment remains fragile after a steep sell-off wiped out hundreds of billions of dollars from the market.
Crypto Market Loses $500 Billion in Days
According to CoinGecko data, the global cryptocurrency market has lost nearly $500 billion in value since last Thursday, as bitcoin dropped below several key psychological thresholds, including $75,000.
Bitcoin is now down roughly 40% from its October peak of over $126,000, raising renewed questions about its role in the broader financial system and whether investors still view it as a long-term store of value.
From Post-Election Highs to a Sharp Reversal
Bitcoin surged to record levels last year amid optimism around a pro-crypto policy environment under former President Donald Trump, with regulators and major financial institutions showing increased openness toward digital assets.
However, the rally proved difficult to sustain. In October, the market was hit by a wave of liquidations, with approximately $19 billion in leveraged positions wiped out in a single day, intensifying selling pressure. Since then, the cryptocurrency has struggled to regain momentum.
“Digital Gold” Narrative Under Pressure
The latest downturn has also reignited debate over bitcoin’s long-touted status as “digital gold.” Traditionally seen by proponents as a hedge during times of uncertainty, bitcoin has failed to benefit from rising geopolitical tensions.
At the same time, investors appear to be grappling with the psychological impact of bitcoin’s four-year market cycle, which has historically been associated with major price corrections. Some analysts suggest the cycle itself may be reinforcing negative sentiment.
Regulatory Gridlock and Institutional Tensions
Bitcoin’s decline is unfolding against a backdrop of growing friction between crypto firms and traditional financial institutions—the same players whose support helped legitimize the asset class during last year’s rally.
Progress on the long-awaited Clarity Act, a comprehensive U.S. crypto regulation framework, has stalled. A White House meeting earlier this week failed to produce consensus, as banks and crypto companies clashed over stablecoin incentives, including interest-bearing rewards.
Gold Comparison Adds Another Layer of Complexity
The comparison between bitcoin and gold has become increasingly complex. In the past month, gold has actually been more volatile than bitcoin, according to Bloomberg. Meanwhile, some crypto companies are deepening their exposure to physical gold—Tether, the world’s largest stablecoin issuer, reportedly holds more gold than many central banks.
What Comes Next?
With bitcoin hovering just above key technical levels, market participants are watching closely to see whether $70,000 can hold. A break below that mark could trigger further selling, while stabilization may help restore confidence.
For now, bitcoin’s latest slide underscores a familiar reality for crypto investors: volatility remains a defining feature, even as the asset continues to mature and integrate with the global financial system.
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape.