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Bitcoin falls under $70,000 as cryptocurrency downturn intensifies ahead of U.S. stock market opening.
"Extreme fear" envelops crypto and precious metals while U.S. equities demonstrate resilience prior to significant earnings reports.
BTCUSD (CoinDesk Data)
Key points:
- Bitcoin slipped below $70,000.
- Cryptocurrency and precious metals are under significant strain, with the Fear and Greed Index at 11.
- U.S. stock markets are up in pre-market trading, with the Nasdaq-100 tracking QQQ ETF gaining 0.22%.
Bitcoin dropped below the $70,000 mark as the selloff in crypto intensified prior to the commencement of U.S. equity trading.
The leading cryptocurrency fell to a low of $69,917.20 per CoinDesk data, with market sentiment further plunging into "extreme fear." The Fear and Greed Index is currently at 11, a figure reached only a few times previously.
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The selloff primarily affects digital assets and precious metals, while the broader U.S. equity markets display strength. Gold experienced a decline of over 1%, falling below $4,900 per ounce, while silver decreased by more than 11%, dropping to under $79 per ounce.
In contrast, U.S. equities are slightly up in pre-market trading. The Invesco QQQ ETF, which mirrors the Nasdaq 100 index, is up by 0.05%.
However, equities associated with Bitcoin continued to drop. MicroStrategy (MSTR), the largest publicly traded holder of Bitcoin, has fallen over 5% and is nearly 80% below its all-time high set in November 2024. The company is expected to announce its fourth-quarter earnings later on Thursday.
Other companies holding Bitcoin, such as Strive (ASST) and Nakamoto (NAKA), have seen declines of around 6%.
Coinbase (COIN), a crypto exchange, has decreased by an additional 2%, while its competitor Bullish, which owns CoinDesk, is down 0.4%.
Bitcoin-related AI miners are showing mixed results. IREN (IREN) is down 3%, while Cipher Mining (CIFR) has fallen 2%, following significant drops of about 15% each on Wednesday. Larger miners with substantial Bitcoin holdings, including Riot (RIOT), MARA Holdings (MARA), and CleanSpark (CLSK), are all down approximately 3%.
Some potential relief could arise if correlations remain, as the iShares Expanded Tech Software ETF (IGV) is slightly up. This is an industry sector that Bitcoin has historically followed closely. Meanwhile, Google (GOOG) is down 3% despite exceeding fourth-quarter profit expectations, following the announcement of increased capital expenditures of $185 billion, up from $175 billion, with projected spending of around $119.5 billion.
UPDATE (Feb. 4, 11:45 UTC): Includes pre-market equity movements starting in the fifth paragraph.
