The crypto market crash intensified Thursday as Bitcoin slid below the key $70,000 level, dragging the total digital asset valuation down to about $2.3 trillion from a prior peak above $4.2 trillion.
At the same time, economist Roubini issued a fresh warning, arguing that most cryptocurrencies could face deeper losses in what he described as an industry-wide collapse.
What Happened
Bitcoin’s selloff accelerated through the session, with the token breaking below support levels that traders had been watching closely. Losses spread quickly across altcoins, adding to weeks of sustained pressure across the market.
Total crypto capitalization has now shrunk by nearly half from its record highs, reflecting broad risk aversion and reduced appetite for speculative assets.
Roubini, often nicknamed “Dr. Doom” for predicting the global financial crisis, said many crypto projects lack real adoption. He argued that most so-called blockchain systems are centralized and permissioned, rather than truly decentralized networks.
Why It Matters
Roubini’s comments add to a growing list of skeptics questioning crypto’s long-term utility.
He isn’t alone. Gold advocate Peter Schiff has also warned that Bitcoin could weaken further, pointing to gold’s resilience near record highs while digital assets struggle.
Still, some industry voices see the downturn as cyclical. Michael Novogratz noted that sharp drawdowns have occurred in past cycles and described volatility as part of crypto’s long-term growth process.
Market Impact
Sentiment indicators suggest panic conditions.
The Crypto Fear and Greed Index has dropped to 11, placing it firmly in the extreme fear zone. Historically, such readings often coincide with heavy capitulation and, at times, eventual rebounds.
Momentum gauges also show exhaustion. The Relative Strength Index and stochastic indicators for Bitcoin and Ethereum have moved into oversold territory, levels that previously preceded short-term recoveries.
Expert Insights
Some analysts argue that macro conditions could offer relief. Expectations of further interest rate cuts from the Federal Reserve may improve liquidity and make risk assets more attractive later in the year.
For now, however, selling pressure remains dominant as traders weigh bearish forecasts against deeply discounted prices.
The market faces a tense moment. Bitcoin has broken support, economists are sounding alarms, and sentiment sits near historic lows. Yet extreme fear and oversold signals suggest the selloff may be approaching exhaustion.
Whether this marks deeper capitulation or the early stages of stabilization will depend on how buyers respond in the coming sessions.
