Bitcoin dips below $68K as gold suffers worst week in 40 years

Why is Bitcoin’s price experiencing such a brutal retracement?

The cryptocurrency market is facing intense selling pressure. Bitcoin, which was proudly sitting around $75,000 just a few days ago, has suffered a severe correction to land below the critical $68,000 level. This sudden move caught many traders off guard who were anticipating a new spring rally.

This bearish dynamic is unfolding within a particularly tense macroeconomic context. The geopolitical conflict involving the United States, Israel, and Iran has entered its fifth week, instilling a climate of fear across global markets. Faced with this uncertainty, capital is fleeing risk assets, driving a 1.6% decline across the entire crypto market.

According to Killa, the $64,000 to $65,700 zone is crucial for Bitcoin. If BTC loses this zone, a return below $60,000 is almost guaranteed.

Gold collapses to $4,000: An alarm signal for safe haven assets?

The real surprise this week doesn’t come solely from the crypto sphere, but from the precious metals market. Gold, traditionally considered the ultimate safe haven asset in times of crisis, has seen its price collapse around $4,340. This is simply its worst weekly drop in over 40 years.

This historic dump in gold calls into question classic hedging strategies. While tensions in the Middle East intensify, a rush to the yellow metal was expected. Instead, institutional investors appear to be urgently liquidating their positions to recover liquidity, simultaneously impacting both traditional and digital markets.

This unprecedented situation highlights an unexpected correlation between gold and Bitcoin during moments of extreme panic. A saying goes “people buy gold when they fear for the future and they sell gold when they fear for the present.” Tension is therefore at its peak as the stock market finally seems ready to undergo its purge.

How far will they fall?

Despite this short-term picture that appears grim, many experts believe this purge was necessary. Trader Killa reminds us that the drop will be a buying opportunity between $50,000 and $60,000.

As for gold, a drop into the demand zone around $3,400 seems to be the direction the market is taking. However, gold has already shown strong volatility in recent months. A short-term bounce is possible at any time.

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