Bitcoin crashes below $70,000; Gold, silver tumble in broad risk-off pullback

Dubai: Bitcoin fell below $70,000 on Thursday, hitting its lowest level since November 2024, as a sharp pullback rippled across assets once viewed as market shelters. The sell-off intensified in precious metals, with silver plunging more than 12% and gold sliding nearly 2%, underscoring a sudden shift away from crowded defensive trades.

The world’s largest cryptocurrency briefly dropped to around $69,800 before rebounding above $71,000. Even with the bounce, bitcoin remains down nearly 20% over the past week and is trading near $70,500, far below its record high above $124,000 set in October.

Gold fell 1.9% to about $4,855 an ounce after a period of extreme volatility. Prices had surged toward $5,600 last week before dropping below $4,500 earlier in the week. In the UAE, gold prices had dropped nearly Dh10 per gram to Dh585 for 24-karat, Dh542 for 22-karat. (Check live forex prices here.)

Precious metals reverse

Silver saw even sharper moves, tumbling 12.1% as last week’s record-breaking rally abruptly reversed. Gold and silver had surged as investors sought protection from political uncertainty, concerns over lofty US equity valuations, and rising global government debt. The scale and speed of those gains left markets vulnerable to a correction, which critics had warned was increasingly likely.

Bitcoin, often promoted as “digital gold,” has now joined that retreat. Selling pressure accelerated as investors pulled money from US spot bitcoin exchange-traded funds, amplifying losses across the crypto market.

The latest downturn followed comments from US Treasury Secretary Scott Bessent, who told lawmakers he does not have the authority to direct banks to buy cryptocurrencies, dampening expectations of official backing. The volatility spike on February 5 triggered roughly $775 million in liquidations across crypto markets, forcing leveraged traders to exit positions.

Support under scrutiny

The speed of bitcoin’s rebound has fueled debate over whether the move was a liquidity-driven flush or the early stage of a deeper decline. Technical analysts say $70,000 remains a critical level, with a daily close above it seen as key to stabilising sentiment. The broader downturn reflects a risk-off shift across global markets, driven by tighter liquidity and declining appetite for speculative assets.

Economist Nouriel Roubini said the latest decline highlights crypto’s volatility and its tendency to behave like a leveraged risk asset rather than a store of value. He noted that gold rose strongly in 2025 while bitcoin fell, challenging claims that the two assets serve similar roles. Roubini said stablecoins remain the only widely adopted crypto use case, with broader financial integration still uncertain.

Investor Michael Burry warned that bitcoin’s drop could spill into other markets, including gold and silver. He said crypto losses may have forced institutions to liquidate up to $1 billion in precious metals late in January to cover losses. Burry also cautioned that a further slide toward $50,000 could strain bitcoin miners and related markets.

Dollar strength pressures

The broader risk-off mood extended beyond crypto and metals as the dollar climbed to a near two-week high. Gold and silver weakened as the stronger dollar made commodities more expensive for overseas buyers. Oil prices also fell, with US crude down $1.05 to $64.09 a barrel and Brent crude slipping $1.11 to $68.35.

Currency markets reflected the cautious tone, with the dollar strengthening against the yen and holding firm against the euro. Across asset classes, investors are reducing exposure to volatility and reassessing crowded trades. Bitcoin remains at the centre of that recalibration, increasingly exposed to the same forces reshaping global markets.