Since peaking above $126,000 in October, bitcoin has fallen more than 50%
Bitcoin slid below $61,000 on Thursday, shaking investor confidence in the world’s largest cryptocurrency.
The token briefly touched $60,062 before bouncing to about $62,448, still down roughly 15% for the day.
Selling picked up after bitcoin broke the key $70,000 level earlier in the session for the first time since it began rallying following President Trump’s 2024 election. The digital coin has now lost nearly 30% this week alone, showing how quickly sentiment has turned negative.
Since peaking above $126,000 in October, bitcoin has fallen more than 50%. Over the past year, it has dropped nearly 40%, while gold futures have surged 61%, highlighting bitcoin’s underperformance.
Investors lose faith
The virtual currency was once viewed as digital gold and a hedge against inflation. But recent volatility has seen it trade similarly to other risky assets, such as tech stocks.
Crypto sentiment darkened further after Trump nominated Kevin Warsh to lead the Fed, seen as unfriendly to crypto, and Treasury Secretary Scott Bessent ruled out a government bailout.
Lately, investors have been losing interest in the digital asset. Fading enthusiasm can be attributed to stalled regulatory efforts and growing doubts about Bitcoin’s practical value.
Other cryptocurrencies also declined. Ether fell 33% this week, and Solana slid to $88, near a two-year low.
Forced liquidations added stress, wiping out over $2 billion in crypto trades. Analysts say weak institutional demand and cautious investors may keep prices volatile, with $60,000–$65,000 seen as the next support range.