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Bitcoin crashes below $70K as four-month slump deepens investor fears

A brutal sell-off sends Bitcoin to 11-month lows, leaving traders in panic. Meanwhile, global stocks defy the crypto chaos—what's driving the divide?

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2 min read
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Bitcoin crashes below $70K as four-month slump deepens investor fears

Bitcoin's price fell sharply on Thursday, dropping below $70,000 for the first time since late 2024. The decline wiped out around 13 percent of investors' holdings in a single day. This latest drop extends a four-month losing streak—the longest since 2018—leaving traders increasingly anxious about the cryptocurrency's future.

The slump began in mid-January, when Bitcoin crashed from over $80,000 to below $75,000 by early February. By Thursday, it had plunged further to $63,000, marking its lowest point since April 2025. The prolonged downturn has pushed the Fear & Greed Index into extreme fear territory, reflecting growing unease among investors.

Unlike Bitcoin, global stock markets have shown mixed but largely positive trends in recent weeks. Germany's DAX closed January up 0.20 percent at 24,538 points, after hitting a record high of 25,507 earlier in the year. The MSCI World Index, which saw double-digit gains in 2025, has remained resilient into 2026. Vietnam's VN-Index also rose by about 2.5 percent in January.

In contrast, some indices dipped slightly. The Swiss Market Index (SMI) fell 0.86 percent on February 4, despite reaching record highs earlier in the year. The S&P 500 closed at 6,918, down 0.8 percent, while the Nasdaq 100 dropped 1.6 percent in recent trading. Analysts note that Bitcoin's decline appears linked to institutional investors pulling back from crypto, with no clear connection to broader stock market movements, which have been driven by AI sector growth and economic optimism.

Bitcoin's four-month decline has now erased significant value, leaving investors facing steep losses. While stock markets continue to show strength, the cryptocurrency's drop highlights a growing divide between traditional assets and digital currencies. The situation reflects broader uncertainty in crypto markets, with no immediate signs of recovery.

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