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Bitcoin slipped below the $66,000 level on Thursday as the broader crypto market moved lower alongside falling U.S. equities, highlighting the increasing correlation between digital assets and traditional risk markets. The decline occurred during late U.S. trading hours as the tech-heavy Nasdaq index dropped sharply, weighing on overall market sentiment.
Bitcoin and Ether Extend Losses
Bitcoin fell to around $65,700, marking a decline of roughly 1.5% over the past 24 hours, while ether dropped more than 2%, trading just above $1,900. The move pushed bitcoin back toward the lower end of its recent trading range, suggesting that bullish momentum remains weak following last week’s sharp sell-off.
Market behavior has shown a familiar pattern , crypto often decouples when equities rally, but quickly correlates when stocks decline. This dynamic has become more evident during the current bearish phase, where macro-driven risk aversion continues to dominate price action.
Extreme Fear Dominates Sentiment
Investor sentiment has deteriorated significantly, with the Crypto Fear & Greed Index falling to 5, indicating a state of “extreme fear.” This level is even lower than those recorded during the 2022 crypto winter and the 2020 pandemic crash, reflecting deep pessimism among market participants.
The lack of a sustained bounce from last week’s panic-driven drop has led to growing concerns that the market may be entering a capitulation phase, where persistent selling pressure overwhelms short-term buying demand.
Crypto-Related Stocks Also Slide
The weakness has extended beyond cryptocurrencies, with crypto-exposed equities also declining sharply as lower asset prices pressure trading volumes and revenue expectations across the industry. This broad-based decline reflects the ongoing risk-off environment impacting both digital assets and related financial firms.
Macro Forces Continue to Drive the Market
The latest drop reinforces the view that crypto markets are now closely tied to macroeconomic developments and equity market trends. As investors reduce exposure to risk assets amid uncertain growth prospects and interest-rate expectations, cryptocurrencies are increasingly moving in tandem with traditional markets.
Additionally, cautious institutional forecasts warning of potential further downside have added to bearish sentiment, increasing volatility and uncertainty in the near term.
Outlook: Volatility Likely to Remain Elevated
With equities under pressure and investor sentiment deeply negative, near-term volatility in crypto markets is likely to persist. While long-term adoption trends and institutional participation remain supportive, the short-term trajectory will depend heavily on macro stability and a return of broader risk appetite.
For now, bitcoin’s drop below $66,000 highlights the fragile state of the market, where movements in U.S. stocks continue to play a crucial role in shaping crypto price action.
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