Bitcoin falls below $72,000 as market faces a ‘crisis of faith’

Bitcoin signage on the exhibition floor during the Plan B Forum Bitcoin conference in San Salvador, El Salvador, on Friday, Jan. 30, 2026. The conference brings together world leaders, technologists, and entrepreneurs to discuss nation-state Bitcoin adoption, economics, financial freedom, and freedom of speech. Photographer: Camilo Freedman/Bloomberg

• Bitcoin dropped below $72,000, lowest since Nov 2024 amid global market sell-off.
• Crypto market sentiment is in extreme fear after a 17 percent drop this year
• US Bitcoin ETFs saw choppy flows with $272 million pulled out Tuesday

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Bitcoin briefly slumped below $72,000, a level last seen 15 months ago, as a broad risk-off move engulfed global markets.

The world’s largest cryptocurrency is extending a downward spiral that has seen it shed more than 42% from its peak in October last year. Bitcoin fell as low as $71,739 late Wednesday in New York. That’s the weakest level since Nov. 6, 2024, the day after Donald Trump was re-elected US president.

“The market is currently navigating a ‘crisis of faith,’” said Shiliang Tang, managing partner of Monarq Asset Management.

While earlier legs of the decline were driven by crypto-specific liquidations, the Wednesday pressure is tied to wider cross-asset stress.

Markets entered a period of synchronized selling Wednesday, with the Nasdaq 100 down more than 2% and losses spreading across software, chipmakers, and other rate-sensitive corners of the equity market.

“Crypto sentiment is currently in extreme fear as the market has been routed over the last week,” said Andrew Tu, head of business development at crypto market maker Efficient Frontier. “If $72,000 doesn’t hold for Bitcoin, it’s highly likely we will visit $68,000 and potentially even decline back down to the lows of 2024 after the initial rally.”

Flows to US-listed Bitcoin exchange-traded funds remain choppy. After seeing about $562 million in net inflows on Monday, investors pulled out $272 million from the group on Tuesday, according to data compiled by Bloomberg.

Skepticism about Bitcoin’s role as a safe haven during market stress is growing. The token is now down about 17% this year, and the broader crypto market has lost over $460 billion in value in the past week.