Bitcoin Faces Severe Market Downturn Amid Investor Uncertainty
Bitcoin experienced a sharp downturn this week, dropping towards $60,000 as investors reconsidered its practical value. While no single factor appears to have triggered the decline, the broader crypto market is evidently in turmoil. Anthony Scaramucci, founder and managing partner of alternative investment firm SkyBridge, expressed concern to CNBC, stating, 'There's nothing going on in the marketplace that should have necessitated this type of a crash. And so I think that's made people, frankly, more fearful. ... You have to ask yourself, is it over for bitcoin?'
On Thursday, bitcoin dipped to $60,062, its lowest point since October 11, 2024, marking a decrease of over 52% from its all-time high of $126,000 reached in early October 2025. The previous session was notably turbulent, with the cryptocurrency losing over 15% in a day, and its daily relative strength index plummeting to 18—indicative of extreme oversold conditions. Similarly, other digital currencies such as ether and solana have also faced significant declines, each down 24% and 26% for the week, respectively, hinting at a broader decline in investor confidence within the crypto sector.
Bitcoin Bounces Back, Yet Challenges Persist
Despite the downturn, bitcoin showed signs of recovery on Friday, trading at $69,631.97, marking an increase of over 9% for the day. However, this recovery hasn't quelled concerns, as investors continue to assess its role as either a digital currency or a store of value. At the same time, institutional interest appears to be diminishing, evidenced by substantial outflows from spot bitcoin exchange-traded funds, potentially pushing bitcoin further into negative territory. Jasper De Maere, desk strategist at crypto market-making firm Wintermute, highlighted the current situation, noting that this occurrence differs from previous bear markets, stating, 'It's a fundamentally macro-driven deleveraging tied to positioning, risk appetite and narratives rather than systemic failures within crypto itself.'