As Bitcoin fell toward $60,000 this week, investors began reassessing its utility. Although there is no singular catalyst for the steep decline, it's evident that the crypto market is experiencing turmoil. According to Anthony Scaramucci, founder and managing partner of SkyBridge, nothing in the market justifies such a drastic downturn, which has elevated investors' fears. 'You have to ask yourself, is it over for bitcoin?' commented Scaramucci on CNBC.
On Thursday, Bitcoin hit a low of $60,062, the lowest since October 11, 2024. This represents a decline of over 52% from its all-time high of $126,000, achieved in early October 2025. The previous session was particularly harsh for Bitcoin, as it lost over 15% in a single day, with its daily relative strength index plummeting to 18, marking it as extremely oversold. Other digital assets like ether and solana have also decreased, with weekly losses of 24% and 26% respectively, indicating waning confidence in the entire crypto market.
Despite Bitcoin's rise on Friday, gaining over 9% to trade at $69,631.97, its recent slump has led investors to reconsider its utility as either a digital currency or a store of value. Institutional interest appears to be diminishing, with significant outflows from spot bitcoin exchange-traded funds, which poses a risk of further declines.
'This period is significantly different from previous bear markets,' stated Jasper De Maere, a desk strategist at Wintermute, a crypto market-making firm, in a statement to CNBC. 'This downturn is fundamentally driven by macroeconomic factors associated with positioning, risk appetite, and shifting narratives rather than systemic failures within the crypto space itself.'