Bitcoin experienced a sharp decline this week, approaching the $60,000 mark, as investors reconsidered its viability. While no singular catalyst has been identified for this downturn, it's apparent that the crypto market is facing a challenging phase. Anthony Scaramucci, founder of SkyBridge Capital, remarked to CNBC that there was no apparent market condition justifying such a crash, stirring investor fears about Bitcoin's future. On Thursday, Bitcoin's price plummeted to $60,062, its lowest since October 2024, marking a more than 52% decrease from its peak of $126,000 in October 2025. The previous session was notably harsh for the cryptocurrency, with a daily loss exceeding 15%. The digital currency's relative strength index fell to 18, indicating an oversold state. Ether and Solana also saw declines of 24% and 26% for the week, respectively, indicating widespread lack of confidence in the crypto sector.
Bitcoin showed some recovery on Friday, trading at $69,631.97, a rise of over 9% for the day. Despite this uptick, Bitcoin's recent volatility has led investors to rethink its purpose, including whether it functions better as a digital currency or a store of value. Meanwhile, interest from institutional investors appears to be dwindling, reflected by notable outflows from spot bitcoin exchange-traded funds, which could potentially drive values down further. Jasper De Maere, a desk strategist at Wintermute, a crypto market-making firm, told CNBC that this downturn differs from past bear markets as it isn't caused by structural issues within the crypto space but rather a macro-driven deleveraging influenced by market positioning, risk tolerance, and existing narratives.