FX.co ★ Bitcoin Plunges Below $70,000

Bitcoin recently fell below $70,000, marking its first dip below this threshold since October 2024. This represents a 25% decline since the beginning of the year and is part of a broader selloff affecting speculative assets. The cryptocurrency's drop undermines the narrative that it serves as a hedge against inflation and geopolitical instability, aligning instead with a similar decline in gold. The increased allocation of Bitcoin within institutional portfolios has heightened its susceptibility to risk reduction strategies, especially in light of recent heightened volatility and increased margin requirements in precious and base metal derivatives. Moreover, retail traders have been reducing their cryptocurrency holdings, opting instead for a diverse array of speculative alternatives such as leveraged ETFs focused on AI companies, zero-day options for equities, and growing betting markets.