Bitcoin has seen a rough week, dropping toward $60,000. While no single reason explains this fall, many investors are feeling uneasy about its future.
Anthony Scaramucci, from the investment firm SkyBridge, spoke about this uncertainty. He noted, “There’s nothing in the market that should cause such a crash,” suggesting a lack of reassurance is making people doubt Bitcoin’s stability.
On Thursday, Bitcoin fell to around $60,062, marking its lowest price since October 2024. This is over 52% down from its peak of $126,000 in early October 2025. That day was especially tough, with Bitcoin losing more than 15% in a single session. The selling pressure impacted other cryptocurrencies too; Ether and Solana dropped by 24% and 26%, respectively.
After this dip, Bitcoin showed signs of recovery, rising over 9% to about $69,632 on Friday. Despite this bounce, investors are reconsidering Bitcoin’s role as a digital currency. Interest from big institutional investors seems to be fading, which could lead to further declines. Spot Bitcoin exchange-traded funds (ETFs) are seeing unusual outflows, raising flags for the market.
Jasper De Maere, a strategist at Wintermute, believes this downturn is unique. He emphasizes that it’s driven more by macroeconomic factors rather than failures within the crypto ecosystem itself. Historical comparisons show that Bitcoin is often seen as a risk asset, moving in tandem with stocks during times of economic stress.
Over the last year, Bitcoin’s price dropped by 28%, while gold gained 72%. This signals gold’s stronger position as a safe haven. Additionally, large withdrawals from Bitcoin funds have been noted, with over $3 billion lost in January alone, following substantial exits in previous months.
Investor sentiment towards Bitcoin as a currency is shifting too. While some businesses, like Steak ‘n Shake, have accepted Bitcoin, most payment initiatives have stalled. Fears about Bitcoin’s security are also growing, especially the potential threat of hacking.
Experts, like Ryan Rasmussen from Bitwise, argue that Bitcoin is transforming into a decentralized store of value rather than functioning as currency. He expressed skepticism about using Bitcoin for everyday purchases, citing the rise of stablecoins as a more viable payment method.
In summary, while the resilience of Bitcoin might still inspire some hope, the market dynamics are shifting. Many investors are watching, but confidence in Bitcoin’s former glory is clearly wavering. Scaramucci affirms, “I believe the story is intact,” but even he acknowledges the uncertainty of the future.
For a deeper dive, visit CoinDesk’s market analysis.
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