Bitcoin came close to hitting the $72,000 mark, dropping over 5% in a day to trade at $72,958.38. This marks a 40% drop from its all-time high of $126,000 in October. Analysts warn of a further decline as geopolitical tensions and economic challenges continue to affect its value.

The world’s oldest cryptocurrency, Bitcoin, saw a significant drop below $73,000, hitting its lowest point in 16 months. Analysts from Citi highlight $70,000 as a crucial level to watch as the digital asset’s downturn persists. Geopolitical tensions and economic headwinds are contributing to its decline.

The recent rotation out of risk-on assets by investors due to rising tensions between the U.S. and Europe, as well as other geopolitical and economic challenges, has led to a drop in Bitcoin’s value. Expectations of a U.S. monetary policy shift and regulatory uncertainties have also impacted the cryptocurrency market.

Institutional outflows driven by expectations of a deeper correction in Bitcoin have reduced liquidity for the token, further affecting its price. Spot bitcoin exchange-traded funds have seen significant outflows following liquidations of highly leveraged positions, with billions exiting the market in recent months.

Bitcoin’s pullback has also impacted crypto stocks, with companies like Strategy and mining firms Riot Platforms and MARA Holdings experiencing declines. The broader cryptocurrency market faces challenges as geopolitical tensions and economic uncertainties continue to influence digital asset values.

Read more at CNBC: Bitcoin bleeds for second straight day, nearly grazes $72,000