In a turbulent trading environment on Thursday, Bitcoin (BTC) has plunged back towards the lower end of its recent trading range, currently valued at $65,700, reflecting a 1.5% decline over the past 24 hours. This dip comes as the tech-heavy Nasdaq composite index suffers a significant drop of 1.6%. Ether (ETH) is also feeling the pressure, trading just above $1,900 with a decline of over 2%.
The relationship between the cryptocurrency market and the Nasdaq is becoming increasingly apparent; Bitcoin’s movements are uncorrelated with the index during times of gains but mirror its downturns. This trend has raised concerns, particularly as Bitcoin has failed to maintain any substantial recovery from last week’s sharp decline. Market sentiment appears to be shifting, leading many bull investors to exhibit signs of capitulation.
Adding to the negative sentiment, the Crypto Fear & Greed Index has plummeted to a staggering level of 5, categorizing the current atmosphere in the market as one of “extreme fear.” This threshold surpasses the fear levels recorded during significant downturns in 2022 and during the onset of the COVID-19 pandemic in 2020, suggesting widespread unease among investors.
In a notable shift from bullish projections, Geoff Kendrick, a seasoned advocate for cryptocurrencies from Standard Chartered, has adjusted his price forecasts for Bitcoin, Ether, Solana, BNB, and AVAX. His new estimates indicate that Bitcoin could potentially drop as low as $50,000 by 2026.
The decline in cryptocurrency values has also adversely affected related stocks. Companies such as Coinbase and Robinhood are among the biggest losers on Thursday, with each experiencing a decline of more than 8%. Coinbase is slated to report its fourth-quarter results later in the day, while Robinhood’s earlier report indicated that the crypto bear market had significantly impacted its trading revenues in the final quarter of 2025, prior to this new wave of price declines.
Other major players in the crypto stock sphere are also experiencing losses. MicroStrategy (MSTR) has fallen by 4.2%, Circle Financial (CRCL) by 4.3%, and Hut 8 (HUT) is down 6.6%. As the cryptocurrency market grapples with these latest developments, the outlook remains uncertain, with market participants anxiously awaiting potential indicators of recovery or further decline.
