Market sentiment was further dampened by comments from US Treasury Secretary Scott Bessent, who told the House Financial Services Committee that he does not have the authority to direct banks to purchase cryptocurrencies

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Bitcoin fell steeply on Thursday, sliding as much as 8% as a renewed sell-off in global technology stocks rattled investor sentiment and triggered risk aversion across financial markets. The world’s largest cryptocurrency was trading near $71,000, down about 7.3%, after briefly dropping to around $69,000 earlier in the day, its lowest level since November 2024, according to CoinDesk.

The sharp fall in bitcoin came alongside heavy losses in Asian equity markets, particularly in technology-heavy indices. South Korea’s Kospi plunged nearly 4%, weighed down by steep declines in major chipmakers, underscoring growing investor unease over elevated valuations in tech stocks and digital assets.

Market sentiment was further dampened by comments from US Treasury Secretary Scott Bessent, who told the House Financial Services Committee that he does not have the authority to direct banks to purchase cryptocurrencies. The remarks reduced expectations of near-term institutional backing for digital assets, adding pressure on bitcoin prices.

Cryptocurrencies have increasingly moved in tandem with high-growth technology stocks, making them vulnerable during periods of equity market weakness. The latest decline follows a strong rally over the past year, prompting analysts to attribute the drop largely to profit-booking and a broader reassessment of risk.

Volatility has also spread to other asset classes. Oil prices fell by more than $1 a barrel, while precious metals saw sharp swings, with silver dropping significantly even as gold edged higher. Currency markets reflected the cautious mood, with the dollar strengthening against the yen.