Bitcoin It fell towards $60,000 this week as investors reassessed its usefulness. And while there is no clear catalyst driving this disaster, one thing is clear: the crypto market is in crisis.
Anthony Scaramucci, founder and managing partner of alternative investment firm Skybridge, told CNBC: “There’s nothing happening in the market that would necessitate this kind of crash.” “So, frankly, I think people have become even more fearful. … They have to ask themselves, ‘Is Bitcoin finished?'”
On Thursday, Bitcoin fell to $60,062, its lowest level since October 11, 2024. This is down more than 52% from its all-time high of $126,000, set in early October 2025.
The last session was one of the most disastrous in Bitcoin history, with the token dropping more than 15% on the day. The daily relative strength index has fallen to 18, putting the asset in extremely oversold territory. As of Thursday, other digital assets include: ether and Solana They are also down 24% and 26%, respectively, in the week so far, indicating that investor confidence in the crypto market as a whole is wavering.
Bitcoin will rebound, but the losses will be large
Bitcoin rebounded on Friday, with the token’s last traded price of $69,631.97, up more than 9% on the day.
However, recent currency devaluations have led investors to reevaluate digital currencies and their usefulness, including their role as stores of value. At the same time, institutional investor demand for the flagship cryptocurrency appears to be waning as the Spot Bitcoin exchange-traded fund has recorded huge outflows, threatening to push Bitcoin deeper into the red.
“However, this one is markedly different from other bear markets and is not in response to a structural outburst,” Jasper Demere, desk strategist at crypto market formation firm Wintermute, said in a statement shared with CNBC. “This is essentially a macro-driven deleveraging tied to positioning, risk appetite, and narrative, rather than a systemic failure of crypto itself.”
Bitcoin price in the past year
Over the past few months, investors have become increasingly skeptical of efforts to recast Bitcoin as “digital gold” or an alternative to traditional safe-haven assets such as Bitcoin. gold. Bitcoin is down 28% over the past 12 months, while gold is up 72% over the same period. This is evidence of the usefulness of the latter as a hedge against macro risks.
Conversely, amid heightened macroeconomic and geopolitical uncertainty, Bitcoin has often fallen alongside other risk-on assets such as stocks, raising questions about its usefulness as a safe-haven asset. Almost a week after President Trump’s “Emancipation Day” tariff announcement on April 2, 2025, Bitcoin fell by about 10% to below $80,000. S&P500 It decreased by about 4%.
Separately, investors are reassessing the degree of willingness of financial institutions, treasury companies, and governments to adopt Bitcoin, which has been a key driver for the token in recent years.
According to a recent analyst note from Deutsche Bank, Bitcoin’s liquidity is thinning as investors brace for a fall in the price, with large institutional outflows increasing.
These outflows have also been noticeable among spot Bitcoin ETFs in recent months, the investment firm said. More than $3 billion went out of those funds in January, on top of about $7 billion in December and November.
Furthermore, the area strategy Copycats that have emerged over the past year or so have delayed or paused Bitcoin purchases amid a correction in the digital asset.
Finally, traders acknowledged that years of efforts to bring Bitcoin to market as a fiat alternative have all but disappeared. Bitwise’s Ryan Rasmussen said Steak ‘n Shake and Compass Coffee have expanded support for Bitcoin payments in recent years, but efforts to make Bitcoin a payment method have all but died down, especially as interest in stablecoins pegged to the dollar grew.
“We’re seeing Wall Street embrace stablecoins because it’s a fundamental change in how payments work, and Bitcoin is just another asset. That’s not what it’s meant to be today,” Rasmussen said, arguing that the token’s purpose has evolved from a monetary purpose to a decentralized, non-governmental store of value. “I have never paid for coffee or a sandwich with Bitcoin, and I never will.”
And beyond these immediate concerns, investors are also increasingly worried about the possibility that Bitcoin’s underlying network could be hacked and the token could be wiped out.
“There’s certainly a focus on this risk as investors become more concerned, and I think Bitcoin is pricing in a little bit of that risk,” Rasmussen said.
He noted that Bitwise is allocating funds to efforts to mitigate the threat posed by quantum computing.
Nevertheless, traders’ appetite for Bitcoin has significantly waned, and its price has fallen. This is true even though long-time believers still proudly bet on Bitcoin, despite the charts and naysayers.
“We believe the story is intact,” Scaramucci said, adding that he bought Bitcoin for his fund on Thursday. “But I don’t have a crystal ball… who knows?”
