Bitcoin fell to $60,000 this week as investors reassessed its usefulness. While there isn’t one specific catalyst driving the bloodbath, 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 going on in the market that warrants a crash like this.” “So I think that made people, frankly, even more fearful… You ask yourself, ‘Is it over for Bitcoin?’ you should ask.”
On Thursday, Bitcoin fell to $60,062, its lowest level since October 11, 2024. That’s down more than 52% from a record high of $126,000 in early October 2025.
The previous session was one of Bitcoin’s bloodiest sessions, with the token down more than 15% on the day. Its daily relative strength index fell to 18, putting the asset in oversold territory. As of Thursday, other digital assets are favored ether and that’s all It’s also down 24% and 26% year-to-date, respectively — a sign of waning investor confidence in the entire cryptocurrency market.
Bitcoin rises, but the losses are huge
Bitcoin was will rise again on Fridayin recent trading, the token was at $69,631.97, up more than 9% on the day.
But its recent decline has prompted investors to reassess its usefulness, including its role as a digital currency or store of value. Meanwhile, institutional appetite for the flagship crypto appears to be waning, with spot bitcoin exchange-traded funds registering massive inflows that threaten to push bitcoin deeper into the red.
“This timing is very different from other bear markets, but it’s not a response to a structural blowout,” Jasper De Meer, desk strategist at crypto market making firm Wintermute, told CNBC in a statement. “This is a fundamental macro-leverage related to positioning, risk appetite and narrative rather than systemic failures in cryptocurrency.”
Bitcoin price last year
In the past few months, investors have become skeptical of efforts to recast bitcoin as “digital gold” or an alternative to traditional safe havens. gold. Bitcoin is down 28% over the past 12 months, while gold is up 72% over the same period — a testament to the latter’s usefulness as a hedge against macro risks.
In contrast, bitcoin has often fallen along with other riskier assets such as stocks during periods of high macroeconomic and geopolitical uncertainty, calling into question its usefulness as a safe haven. About a week after Trump’s “liberation day” tariff announcement on April 2, 2025, bitcoin fell nearly 10% to below $80,000, while S&P 500 decreased by about 4%.
At the same time, investors are reassessing how willing financial institutions, treasury firms and governments are to accept bitcoin – a major catalyst for the token’s rise in recent years.
According to a recent Deutsche Bank analyst note, large institutional inflows are on the rise as investors seek Bitcoin’s decline, reducing the token’s liquidity.
According to the investment firm, these flows have also been seen among bitcoin ETFs in recent months. In addition to nearly $2 billion last December and nearly $7 billion last November, the fund saw more than $3 billion in outflows in January.
Also, a part Strategy Copycats that have emerged over the past year have slowed or temporarily halted bitcoin purchases during the digital asset’s correction.
Finally, traders acknowledged that a long-running effort to market bitcoin as an alternative to fiat currencies has been largely dismantled. While Steak ‘n Shake and Compass Coffee have supported bitcoin payments in recent years, initiatives to turn the asset into a form of payment have largely disappeared, especially as interest in dollar-pegged stablecoins is growing, according to Bitwise’s Ryan Rasmussen.
“We’re seeing Wall Street embrace stablecoins because it’s a fundamental change in the way payments work, and bitcoin is a different asset. It’s not designed for that today,” Rasmussen said, arguing that the token’s goal is to shift from a currency to a decentralized, unmanaged store of value. “I have never paid for a coffee or a sandwich with Bitcoin, and I never will.”
In addition to these immediate concerns, investors are increasingly worried that Bitcoin’s main network could crash, bringing the token to zero.
“It’s certainly a risk that investors are paying more attention to because they’re more concerned, and I think you’re seeing some of that risk priced into bitcoin,” Rasmussen said.
He noted that Bitwise has invested in reducing the risk of quantum computing.
However, traders’ appetite for Bitcoin has significantly decreased, driving down its price. That’s right, even long-time believers are still proudly betting on Bitcoin despite the charts and the naysayers.
“I believe in the integrity of this story,” Scaramucci said Thursday, adding that he bought bitcoin for his fund. “But I don’t have a crystal ball… Who knows?”