Bitcoin moved closer to the important $70,000 level on Thursday as selling pressure continued across the crypto market. The decline showed no clear signs of slowing during Asian trading hours.
The world’s largest cryptocurrency fell more than 3% to $70,052.38. This marked its lowest price since November 2024. Traders are closely watching whether Bitcoin will fall below this key psychological level.
Ether also remained under pressure. The second-largest cryptocurrency dropped nearly 2% to trade around $2,086. A fall below $2,000 would push ether to its weakest level since May last year.
The recent selloff has been sharp and sudden. Analysts link the drop to growing concerns over U.S. monetary policy. These concerns followed the nomination of Kevin Warsh as the next Federal Reserve Chair. Market participants expect him to take a tougher stance on inflation.
Investors fear Warsh may reduce the size of the Federal Reserve’s balance sheet. This move could limit liquidity in financial markets. Cryptocurrencies usually perform better when liquidity is high.
Market experts say this shift has hurt sentiment. A smaller balance sheet offers little support for speculative assets like Bitcoin. As a result, traders have turned more cautious.
Bitcoin has already fallen more than 7% this week. Its total losses for the year now stand close to 20%. Ether has declined even more sharply, losing almost 30% since the start of the year.
Cryptocurrencies have struggled for several months. The pressure increased after a major crash last October. That crash wiped out leveraged positions and triggered heavy selling.
Investor confidence has remained weak since then. Many traders remain uncertain about the near-term outlook for digital assets.
Institutional investors have also reduced exposure. Deutsche Bank analysts pointed to large withdrawals from crypto exchange-traded funds. These funds have recorded billions of dollars in outflows each month since late 2025.
U.S. spot Bitcoin ETFs saw outflows of over $3 billion in January. This followed withdrawals of $2 billion in December and $7 billion in November.
In other related news also read Bitcoin Reaches New All-Time Record High
Analysts say this trend signals falling interest from traditional investors. Overall sentiment toward the crypto sector remains fragile as selling pressure persists.
