Summarised by Centrist
A sharp sell-off across global markets is accelerating as investors pull back from risk, hitting cryptocurrencies, equities and currencies.
Bitcoin has led the retreat. The world’s largest cryptocurrency fell more than 10 per cent in a single session, dropping below US$66,000 (NZD$110,680), its lowest level since October 2024. That marks a near 50 per cent collapse from its late-2025 peak above US$125,000 (NZD$209,660).
Investors are exiting riskier assets more broadly, including tech stocks and digital assets. Since bitcoin peaked, the divergence has been stark: gold is up roughly 70 per cent, while bitcoin has fallen more than 30 per cent.
Bitcoin’s “digital gold” narrative is being tested as exchange-traded fund inflows have dried up and turned decisively negative. Analysts at Citi note that bitcoin has now fallen below the average entry price for many US spot bitcoin ETF investors, amplifying selling pressure.
Shares in Strategy, the largest corporate holder of bitcoin, fell more than 10 per cent as prices slid toward levels below the firm’s average purchase cost.
Meanwhile, the US dollar has come under pressure as investors reassess geopolitical and policy risk, including renewed trade tensions, tariff threats and global instability.
The nomination of Kevin Warsh as US Federal Reserve chair, previously seen as crypto-friendly, has done little to slow outflows.
According to CoinGlass data cited by Bloomberg, around US$1.4 billion (NZD$2.3 billion) in bullish crypto positions were liquidated in just 24 hours, underscoring how fast risk appetite has evaporated.
Analysts say bitcoin appears to have lost its appeal both as a hedge and as a momentum trade. Even positive regulatory developments and high-profile buyers have failed to arrest the slide, leaving investors searching for a “value zone” before confidence returns.
