Bitcoin drops below $71,000, hitting a new low for the phase! Market panic sentiment intensifies

Bitcoin prices continued to decline on Wednesday evening, breaking below the $71,000 psychological level and hitting a new low since October 2024. Risk asset sentiment rapidly spread to global markets. Data shows that over the past 24 hours, BTC has fallen approximately 7.2%, with a low of $70,894; Ethereum also retreated to $2,091, nearly an 8% drop.

Vincent Liu, Chief Investment Officer of Kronos Research, stated that Bitcoin lost a key support level after multiple failed rebounds, triggering a large-scale long liquidation. At the same time, the US stock market’s tech sector declined, risk-averse capital shifted away, and ETF fund outflows continued, collectively amplifying downward market volatility.

A decline in macro risk appetite is also an important driver. Peter Chung, Head of Research at Presto Research, pointed out that the current trend of crypto assets is highly synchronized with global risk markets. Under risk-averse sentiment, investor confidence has fallen to the lowest point since the last bear market. The cryptocurrency fear and greed index is currently at 12, still in the “extreme fear” zone.

As prices rapidly fell back, related concept stocks also experienced a correction, indicating that capital’s attitude toward high-risk assets is becoming more cautious. Analysts believe that this round of adjustment is not driven by a single event but is the result of multiple macro and market structural factors stacking together.

Despite ongoing short-term pressure, Chung believes that extreme pessimism often masks potential long-term opportunities. Liu also emphasized that the market is closely watching whether Bitcoin can hold the $70,000 psychological level. If liquidation scales slow down, sentiment warms, and ETF fund flows stabilize, it could be an early sign of weakening selling pressure.