Bitcoin Price Analysis: BTC Dips To $73,000 As Crypto Mirrors Global Risk Aversion
Bitcoin (BTC) slipped back into bearish territory after a brief relief rally as risk-off sentiment returned. Investor sentiment soured after a tech sell-off hit US markets, forcing investors to cut exposure to tech assets.
Cryptocurrency markets mirrored the downtrend as BTC slipped below $75,000 for the second time this week, dropping to a low of $72,859 on Coinbase before settling at $75,661.
However, some market experts, including Joe Burnett, Vice President of Bitcoin Strategy at Strive, believe BTC’s recent decline and price action are nothing out of the ordinary.
Michael Burry Warns Of “Catastrophe” If Bitcoin Continues Dropping
Legendary investor Michael Burry has warned that if Bitcoin continues its decline, it could trigger a catastrophic $1 billion sell-off in gold and silver. Burry argued that Bitcoin has been projected as a “purely speculative asset,” and has failed as a safe haven asset along the lines of gold. He added that crypto’s correlation with precious metals has created “sickening scenarios” that are now within reach.
Michael Burry warned that Bitcoin’s ongoing decline could destroy significant value, especially for companies holding large BTC reserves. He said Bitcoin has failed as a safe haven like gold and could push aggressive corporate holders into bankruptcy, triggering broader market fallout. He also highlighted Bitcoin’s correlation with the S&P 500 and its impact on recent drops in gold and silver.
Burry’s prediction comes at a time when the flagship cryptocurrency plunged to a low of $72,859, as selling pressure returned after a brief recovery. Burry also warned that Bitcoin treasury companies could face millions in losses. The ace investor highlighted Michael Saylor’s Strategy, stating that it could lose millions if Bitcoin drops another 10%.
Strategy sees an existential crisis if BTC were to fall to $60,000. This would “find capital markets essentially closed.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) plunged under the $75,000 mark the second time this week as selling pressure returned after a brief relief rally that saw the flagship cryptocurrency briefly cross $79,000. Bulls failed to defend the $73,000 mark on Tuesday, extending a broader risk-off sentiment. The flagship cryptocurrency is trading at a 15% year-to-date loss, and is down over 45% from its all-time high of $126,267. BTC’s recent price action has reinforced investor concerns that its bull cycle may have ended.
Analysts believe the uncertainty in the US stock market is the primary driver of the sell-off across crypto. Investors have long questioned whether the costs tied to AI infrastructure, along with lofty valuations, are sustainable. Investors believe that demand and revenue could fall short of industry projections. Waning investor sentiment is clearly visible across the stock prices of the “Magnificent Seven,” S&P 500, Dow Jones, and NASDAQ. NVIDIA fell 3.4% while Microsoft and Amazon dropped 2.7%.
Meanwhile, liquidations are adding more pressure on Bitcoin, accelerating the pace of selling. According to the available data, around $127.25 million in Bitcoin long positions have been liquidated. Some analysts have suggested that the decline means Bitcoin is available at a deep discount. However, dip buying by the likes of Strategy has done little to stem the decline. However, Joe Burnett, Strive’s vice president of Bitcoin strategy, says Bitcoin’s price action is “nothing out of the ordinary.”
Bitcoin is down ~40% from its October high while U.S. equities remain near all-time highs, with the S&P 500 down less than 10%. Under those conditions, a possible ~45% bitcoin drawdown aligns closely with historical volatility. Volatility of this magnitude remains a symptom of a rapidly monetizing asset. If equities weaken further, additional downside is certainly possible. Nasdaq is down ~2% today, and the S&P 500 is down ~1.3%. My key takeaway is simple: Bitcoin’s recent volatility reflects normal market behavior within an unstable fiat credit system.
Bitcoin ended the previous weekend in the red, dropping nearly 3% on Sunday to $86,561. The price recovered on Monday, rising almost 2% to cross $88,000 and settle at $88,250. Buyers retained control on Tuesday as the flagship cryptocurrency rose 0.98% to $89,116. BTC briefly crossed the $90,000 mark on Wednesday and reached an intraday high of $90,476 before settling at $89,162.
Source: TradingView
Selling pressure returned on Thursday as BTC plunged over 5% to $84,513. Buyers retained control on Friday as the price fell to $81,000 before settling at $84,110. Selling pressure intensified on Saturday as BTC plunged below the key $80,000 mark, falling to a low of $75,644 before settling at $78,648. Price action remained bearish on Sunday as BTC fell 2.24% to $76,895. The current week started with BTC falling to $74,502, its lowest level since April 2025. The price recovered to reclaim the $78,000 mark and settle at $78,666. Selling pressure returned on Tuesday as BTC plunged to a low of $72,859 before settling at $75,661. The price is marginally up during the ongoing session, trading around $75,697.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.