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Bitcoin fell to $84,774 on Thursday, its weakest price point since mid-December, as a dramatic reversal in gold prices and sharp declines in technology stocks sent shockwaves through financial markets.
The cryptocurrency shed nearly $3,000 within hours during U.S. morning trading, dropping 4.92% on the day as investors fled risk assets across multiple sectors. The selloff marked bitcoin's lowest level in more than a month, extending losses that had begun building overnight.
The catalyst for bitcoin's decline came as gold experienced a sudden reversal after reaching unprecedented heights. The precious metal had soared above $5,600 per ounce Thursday morning—territory never before touched prior to this week—before plunging nearly 10% in the span of minutes to fall back below $5,200.
Silver followed a similar trajectory, tumbling from $121 per ounce to $108 as the precious metals rally evaporated.
The rapid price movements in traditional safe-haven assets appeared to trigger broader selling pressure across risk-sensitive markets, with cryptocurrencies bearing the brunt of the deleveraging.
Adding to market stress, Microsoft shares plummeted more than 11% following the company's fourth-quarter earnings report, which revealed slowing growth in its cloud computing business. The decline potentially marked Microsoft's worst trading day since March 2020.
The tech giant's stumble dragged the Nasdaq composite lower by approximately 1.5%, intensifying the risk-off sentiment that gripped markets throughout the session.
The turbulence extended beyond bitcoin to the wider cryptocurrency market. Ethereum fell 5% to $2,821, while Solana, Dogecoin and Cardano each dropped between 5% and 6% during the 24-hour period, demonstrating that alternative cryptocurrencies faced even steeper losses than the market's flagship digital asset.
Cryptocurrency-related equities also suffered significant declines. Strategy, the largest corporate holder of bitcoin, dropped 8% to hit 52-week lows, retreating to price levels last seen in September 2024. The company posted its worst single-day performance since Dec. 12.
Other publicly traded crypto companies including Bullish, Twenty One Capital, Circle and Coinbase all declined between 4% and 8% as the sector-wide selloff intensified.
Market volatility indicators reflected the heightened uncertainty, with the S&P 500 Volatility Index jumping more than 16% to reach 19—its second-highest level since late November. Meanwhile, the DXY dollar index rebounded to 96.6 from Wednesday's low of 95.5, potentially adding additional downward pressure on risk assets as the dollar strengthened.
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