Bitcoin Drops to New 2026 Lows as the Selloff Picks Up Speed
During U.S. trading hours, Bitcoin’s price fell faster, reaching $85,200, which was the lowest level for the cryptocurrency in 2026. The move added to the overnight weakness as selling pressure grew along with the liquidation of risk assets around the world.
The selloff wiped out almost $3,000 in just a few hours, showing how weak the mood was after weeks of high volatility. Traders quickly acted on cross-asset signals, which showed that bitcoin is very sensitive to macro-driven risk-off conditions.
Gold Rally Reverses Sharply, Undermining Safe-Haven Confidence
During the U.S. morning trade, gold prices shot up above $5,600 before quickly dropping back down below $5,200. After gold’s historic rise, the sharp drop shocked the markets and made gold seem like a safe haven again.
Silver followed a similar path, dropping sharply after reaching record highs. This made people feel even more uneasy about all commodities. The sudden change made people less sure about defensive positioning, and it spread to other asset classes.
Technology Stocks Bring Down the Stock Market
U.S. stocks fell as technology stocks fell sharply, with Microsoft shares dropping more than 11% after the company released its quarterly earnings report. The drop was one of Microsoft’s worst trading days in years and brought the Nasdaq down a lot.
The Nasdaq fell by about 1.5% as a result of the larger technology selloff, which made people more afraid of taking risks. Investors saw the slowing growth of the cloud as a warning sign for growth stocks with high valuations.
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Altcoins Suffer Deeper Losses as Crypto Weakens Broadly
The crypto markets followed the stock markets down as bitcoin’s drop caused other cryptocurrencies to lose more value. During the same time, Ethereum, Solana, Dogecoin, and Cardano all dropped by 5% to 6%.
Traders cut back on their exposure to higher-risk digital assets, which hurt altcoins more than bitcoin. The pattern showed that bitcoin is a relatively safe place to be in the cryptocurrency market when things get tough.
Crypto-Related Stocks Face Renewed Selling Pressure
As the prices of digital assets fell even more, shares of companies linked to cryptocurrencies fell sharply. Strategy, the company that owns the most bitcoin, fell to its lowest point in 52 weeks and traded close to levels last seen in late 2024.
Coinbase and Circle, two other companies that focus on cryptocurrencies, also lost a lot of money. The drops were because investors were worried about how sensitive revenue is to falling trading volumes and asset prices.
Volatility and Dollar Strength Add Macro Headwinds
The S&P 500 Volatility Index rose more than 16% to one of its highest levels in months, which made the market more volatile. The spike meant that more people wanted protection against losses as the market changed quickly.
At the same time, the DXY index rose from recent lows, putting more pressure on risky assets and the U.S. dollar. Historically, when the dollar gets stronger, it hurts both commodities and cryptocurrencies.
Risk-Off Sentiment Tightens Financial Conditions
The combination of falling stocks, reversing commodities, and rising volatility made it clear that people were becoming less willing to take risks. As correlations between asset classes got stronger, investors quickly cut back on their exposure.
Markets are now more sensitive to macro data and earnings signals because bitcoin has given up most of its early-year gains. The short-term direction is still closely linked to how confident people are in global growth and financial stability.
