Bitcoin has erased all of its 2025 gains and fallen sharply below its yearly open as global macro volatility intensifies, dropping to $87,289 on Thursday — its lowest level since April. Analysts say crypto markets are no longer acting as a hedge against uncertainty and are increasingly moving in lockstep with broader risk-asset sentiment.What to KnowBitcoin has fallen to $87,289, losing all of its 2025 gains.BTC is now down ~7% year-to-date and over 17% in the past month.Analysts say crypto no longer acts as a hedge but tracks traditional markets.Ethereum has slipped to $3,030, down from $3,345 at the start of the year.Glassnode says BTC may be approaching a local bottom near $94K–$100K, but price is currently below that range.Macro Shock Slams Crypto as Bitcoin Breaks Below Yearly OpenBitcoin’s slide below $90,000 this week has pulled the world’s largest cryptocurrency beneath its starting level for 2025, as renewed U.S. tariffs, persistent inflation fears and diminishing hopes for further Fed rate cuts spill across global markets.“Bitcoin and other cryptocurrencies are no longer a hedge against market risk,” said Bill Maurer, director of the Institute for Money, Technology and Financial Inclusion at UC Irvine.“They now track the rest of the market because uncertainty is elevated everywhere — trade wars, inflation, geopolitical shocks, jobs worries, the Fed's stance.”Investors have been de-risking across asset classes, he added, pushing crypto into deeper volatility.Analysts: Bitcoin Behaving Like a High-Beta Risk AssetDuke University finance professor Campbell Harvey agrees:“In a risk-off situation, people dump their risky assets like stocks and bitcoin. That’s what is happening today.”He added that investor focus is shifting toward stablecoins, which he calls the sector’s “first killer app.”Bitcoin’s 2025 Rally Fully UnwoundBitcoin entered 2025 at $93,540. Since then:2025 Timeline (Updated)January: BTC begins the year at $93,540.April: Falls to $74,500 amid tariff uncertainty.October: Hits an all-time high of $126,200 (+35% YTD).November: Drops below $90,000, erasing all gains.Today: Trades at $87,289, down ~7% YTD.Ethereum has mirrored the downturn, sliding to $3,030, below its $3,345 New Year level.Glassnode: BTC Entering a Consolidation Phase — But Price Has Slipped Below the Expected Bottom ZoneBlockchain analytics platform Glassnode reported this week that oversold conditions and slowing outflows suggest Bitcoin may be forming a local bottom in the $94K–$100K range.However, with current price at $87,289, Bitcoin has broken below the lower edge of that expected support area, signaling deeper macro-driven stress than earlier anticipated.‘Fasten Your Seatbelt’: Bitcoin Volatility Is Nothing NewDespite the sharp drawdown, Harvey says history suggests the long-term picture is unchanged:“There have been six episodes where Bitcoin dropped more than 60%.Every time, it recovered and continued to appreciate.So fasten your seatbelt.”He warned, however, that Corporate Digital Asset Treasury strategies — where companies borrow or reallocate reserves into BTC — may be amplifying negative sentiment:“Why gamble a firm’s cash reserves on an asset four times as risky as the stock market?”What’s Next for Bitcoin?Analysts point to several key factors that will determine Bitcoin’s next move:Key Levels$85K–$88K is now the nearest support zone.A recovery back above $94K–$100K would signal stabilization.Macro ForcesFed policy direction at December’s meetingGlobal response to U.S. tariff and trade tensionsVolatility in equities, yields and the U.S. dollarCrypto-Specific DriversOngoing ETF outflowsLiquidation clusters in derivatives marketsWeakening liquidity across altcoinsFor now, Bitcoin remains tightly correlated with traditional markets — meaning its next major move may depend less on crypto-native developments and more on global risk sentiment.
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