The cryptocurrency market experienced significant turbulence this week, with Bitcoin’s value dipping to its lowest point since April. The world’s largest digital asset registered a nearly 2% decline over the past 24 hours, hitting a low of approximately $81,000 late Thursday. This figure places it below its previous floor of $82,175 established in November. While a modest rebound saw the token trading around $82,290 on Friday, according to data from Binance, the broader crypto market felt the ripple effect. Ethereum, for instance, saw its value drop by 4% in the last 24 hours, settling near $2,660.
This downturn in digital currency prices unfolded concurrently with a dramatic slump in the precious metals market, an asset class that had previously enjoyed an extended period of growth. Gold prices fell by 11% in a single day, while silver plummeted an even more substantial 31%. Platinum and copper also registered declines, indicating a broader shift in investor sentiment across various market segments. These simultaneous movements suggest that a confluence of factors is influencing investor decisions, extending beyond the typical drivers for any single asset class.
A pivotal development influencing market jitters emerged Friday morning with President Donald Trump’s announcement that he would nominate Kevin Warsh to succeed Jerome Powell as chair of the U.S. Federal Reserve. This news introduced an element of uncertainty into monetary policy expectations. Beyond this, a pervasive unease among investors regarding the substantial investments made by major technology companies in artificial intelligence has become increasingly apparent. This anxiety was exacerbated after Microsoft reported its earnings on Thursday. Despite strong overall results, the tech giant’s announcement failed to alleviate concerns about increasing expenditure and a deceleration in revenue growth, leading to a more than 10% drop in its stock during after-hours trading.
Industry analysts have pointed to these factors as key contributors to the recent market volatility. Matt Howells-Barby, a vice president at the crypto exchange Kraken, commented via email that “Concerns around heavy AI investment by Big Tech, without the corresponding earnings to justify the spend, appear to be unsettling broader risk assets.” This sentiment was echoed by Jake Ostrovskis, head of OTC trading at the market maker Wintermute, who suggested that the decline in Microsoft’s stock price and the drop in gold values collectively “kick-started the move lower in risk.” The confluence of these events paints a picture of investors re-evaluating their positions in higher-risk assets amidst evolving economic and technological landscapes.
The recent depreciation in Bitcoin’s value continues a trend of flagging performance that began in October. That month saw new tariff threats from the Trump administration precede a “flash crash” in the crypto market. Historically, Bitcoin’s trajectory has often mirrored that of tech stocks, yet a notable divergence has emerged over the past three months. While Bitcoin has fallen more than 30% since early October, the S&P 500 has climbed nearly 3% in the same period, illustrating a decoupling of their typical correlation.
This sustained decline in token prices has prompted some market observers to suggest that the cryptocurrency market, which reached unprecedented highs in 2025, may now be entering a bearish phase. However, not all analysts share this pessimistic outlook. The increasing institutional interest in stablecoins and the ongoing development of new crypto regulations have instilled a sense of cautious optimism in some corners. Alex Kuptsikevich, chief market analyst at the forex broker FxPro, articulated this perspective in a recent research note, stating, “This is just a mild Crypto Winter,” implying that the current downturn might be a temporary correction rather than a prolonged slump. The coming weeks will likely provide further clarity on whether this represents a temporary market adjustment or a more significant shift in the broader investment climate.
