BTC Price Plunge: Why While Gold and Silver Bulls Charge Forward

Bitcoin has taken another hit. After a quick bounce, is sliding back down. This comes as gold and silver show strong gains. Investors are watching closely as traditional safe-haven assets shine while crypto faces pressure.

The Latest on Action

Bitcoin recently climbed about 7% from weekend lows near $74,000. It hit above $79,000. But now, in early U.S. trading, it’s giving up those gains. BTC is trading around $77,100, down 2% in the last 24 hours.

Ether is hurting more. ETH dropped to $2,260, a 4.7% loss. This selloff shows broader weakness in the crypto market.

• Bitcoin (BTC): $77,100 (-2%)
• Ether (ETH): $2,260 (-4.7%)

Gold and Silver Steal the Spotlight

While BTC falls, gold and silver are rebounding hard. Both metals posted big gains after their own dip last Friday. This looks like a real bull market revival.

Why the shift? Gold and silver often act as safe havens during uncertainty. As stocks wobble and crypto dips, investors turn to these precious metals. Bitcoin, once called “digital gold,” is losing that shine for now. The contrast highlights how traditional assets are drawing capital away from riskier crypto bets.

U.S. Stocks Drag Down the Market

The pain isn’t just in crypto. U.S. stocks are falling too, especially AI-related ones. The Nasdaq dropped 1%. Key names like:

• Nvidia (NVDA): Down 3-5%
• Oracle (ORCL): Down 3-5%
• Broadcom (AVGO): Down 3-5%
• Micron (MU): Down 3-5%
• MicroStrategy (MSTR): Down over 2%

MicroStrategy, the top public Bitcoin holder, hit new lows. Coinbase (COIN) and Bullish (BLSH) fell by similar amounts. Galaxy Digital (GLXY) plunged over 12% on weak Q4 results. Stablecoin firm Circle (CRCL) dropped another 3.5%.

This broad selloff ties into fears over AI hype cooling and higher interest rates hurting growth stocks. Crypto often moves with tech-heavy indices like the Nasdaq.

Bitcoin Miners Pivot to AI and Buck the Trend

Not all crypto news is bad. Some Bitcoin miners are rising by shifting to AI infrastructure.

• TeraWulf (WULF): Up 12%. The firm bought two U.S. industrial sites. This could double its power capacity to 2.8 gigawatts.
• Cipher Mining (CIFR): Up 4%. Plans to raise $2 billion in bonds for its Black Pearl data center in Texas. It will provide 300 MW under a long-term AWS lease.

Miners have cheap power and hardware. They’re repurposing for AI data centers, which need massive energy. This pivot offers new revenue as Bitcoin mining gets tougher post-halving.

What Options Traders Are Saying About BTC

Options data paints a cautious picture. Traders expect a short bounce from lows below $75,000, but not much more. Jake Ostrovskis, head of OTC at Wintermute, shared insights.

No big bets on upside. This mirrors April 2025 conditions. Heavy buying of near-term puts has flipped the options curve into backwardation. Short-dated volatility is higher than long-dated.

“I’m watching when volatility cools and the curve goes back to contango. At that point, I’d be more comfortable calling local lows,” Ostrovskis said.

Backwardation signals fear of quick drops. Contango (normal curve) would mean calmer markets and potential bottoms.

What’s Driving the ?

Several factors are at play:

1. Profit-taking: After the rally to $79K, sellers stepped in.
2. Macro pressures: Strong U.S. economy data raises rate hike fears, hurting risk assets.
3. Safe-haven shift: Gold and silver draw funds from Bitcoin.
4. Tech correlation: AI stock weakness spills over.
5. Miner dynamics: Some pivot to AI, but pure crypto plays suffer.

Bitcoin’s correlation with stocks remains high. Until that breaks, expect more volatility tied to Wall Street.

Outlook: Bounce or Deeper Dip?

Traders brace for a brief rebound near $75K support. But without fresh demand, downside risks linger. Watch gold/silver for clues—if they keep rallying, BTC could test $74K lows.

Positive signs? Miners’ AI moves show crypto infrastructure’s value. If options normalize to contango, it could signal a turn.

Long-term, Bitcoin bulls point to ETF inflows and halving effects. Short-term, patience is key amid this resurgence.

Stay Ahead of Moves

Markets change fast. Keep an eye on stock indices, precious metals, and options data. Bitcoin’s story is far from over—it’s just navigating choppy waters while gold and silver run hot.

What do you think? Will BTC rebound soon, or is this the start of a bigger correction? Share your views below.