investors are in “total caution” mode

In June 2025 everything was joy in the crypto world. one bitcoin reached the record value of $124,752 (according to CoinMarketCap) and marked a new historical record. From that moment, falls and more falls that have been done especially in recent days. And it’s not just bitcoin of course: it’s all cryptos.

Bitcoin at $70,000. In the last 24 hours we have seen how bitcoin has barely managed to stay at the $70,000 barrier, and on some platforms it has even traded below that level. Right now it is around $71,600, but even with that data the conclusion is clear: in eight months bitcoin has lost more than 40% of its value.

Risk aversion. We are seeing how the technology stock markets are falling quite generally in recent days because the results of the last quarter of the year have not been as good as expected. Even the gold, which was rising like foamhas also regressed. Investors are reducing risk overall, taking profits (and minimizing losses) and adopting much more cautious stances. In this scenario, BTC behaves as a risk asset, not as a safe haven, so divestment is the strategy that is being extended.

what has happened. The macroeconomic situation is especially complex right now. Analyst Joe DiPasquale explained in Forbes how there is no internal problem in cryptocurrencies, but rather it is the global economic context that has caused the collapse:

• There are assets that are very sensitive to market movements: if the market rises a little, they rise a lot, but if it falls, they collapse. This is what we are seeing with cryptocurrencies, which are, in their opinion, these types of “high-beta” assets.
• Bitcoin and cryptos act as a kind of augmented “mirror” of how much money is left over in the economy. When there is a lot of money circulating (liquidity), bitcoin rises quickly, but if it is scarce, bitcoin is the first asset to be sold.

The real economy weighs, and a lot. Government bonds are up and paying more interest right now, so investors prefer that security. The dollar also rose in value and strengthened, and since it is “more expensive”, you need fewer dollars to buy the same amount of bitcoin, which pushes the price down. But above all, as we said, investors have gone into total caution (“risk-off”) mode and have been selling volatile assets to protect their money in cash or gold.

If the stock market falls, cryptos fall (more). CoinDesk also highlights that the 7.5% drop in bitcoin value In the last 24 hours it precisely followed large falls in Asian assets. There is concern about excessive spending on AI – fear of the bubble bursting again –, exaggerated valuations and lack of that increase in income that everyone promises. Google, Qualcomm and AMD—which fell a spectacular 17% yesterday, Wednesday—are some of the examples of these technological falls.

Source: Alternative

From greed to fear. The situation is very clear if we look at the Greed and Fear Index (Fear & Greed Index) from firms such as Alternative, which place it at a value of 12, or what is the same, “Extreme fear”. This index studies market movements and analysis to give that number, which is a great summary of the scenario we are experiencing. For much of 2025 that level was above 50 and reached 80 (extreme greed), but the current drop is evident.

Bad time for cryptos. Of course, the collapse of bitcoin is as contagious as ever, and practically all cryptocurrencies have registered notable falls in recent weeks. Ethereum, which in August reached close to $4,800, is now in just 2,100. XRP has gone from 3.5 to 1.4 in that same period, and Solana from 247 to 91. Crypto believers are once again seeing their patience tested, but the maxim for them remains clear: HODL.

In Xataka | In 2011 a group of investors bought 80,000 bitcoins. They just sold them 17,000,000% more expensive