Bitcoin slid sharply on Thursday evening, briefly dipping below the $61,000 mark as confidence continued to erode in the crypto that was once promoted as a modern substitute for gold and a reliable store of value.
The asset fell as low as $60,062, extending a sell-off that has gathered pace in recent weeks. The downturn capped a volatile session that saw selling pressure intensify after the token slipped below $70,000 earlier in the day, a threshold many traders consider significant.
The latest move has pushed Bitcoin close to levels last seen before the U.S. election and marks a steep weekly loss of nearly 30%. The sell-off has raised fresh questions about the practical value of cryptocurrencies, which have struggled to live up to claims that they could operate independently of traditional financial systems or serve as reliable stores of value.
Analysts say the tone among investors has shifted noticeably. Marion Laboure, an analyst at Deutsche Bank, wrote in a note this week that persistent selling suggests waning interest from traditional investors and a broader rise in pessimism toward digital assets.
Much of that caution stems from unmet expectations. Rather than moving independently, Bitcoin has largely mirrored the behavior of other risk-sensitive assets, including equities, especially during periods of geopolitical tension in regions such as the Middle East, Venezuela, and parts of Europe. Meanwhile, its use as a payment method for everyday goods and services remains limited.
The performance gap between Bitcoin and traditional safe assets has also widened. Over the past 12 months, Bitcoin has dropped close to 40%, while gold futures have climbed more than 60% over the same period.
Losses have not been confined to Bitcoin. Ether has declined about 33%, while Solana fell 40% to roughly $88 on Thursday, near its lowest level in two years.
The downturn in crypto has coincided with weakness in U.S. technology stocks. The Technology Select Sector SPDR Fund fell 1.8%, extending its losing streak to three sessions. Precious metals have also seen sharp swings, with silver dropping again and gold facing renewed pressure.
Forced liquidations have added to the turbulence. These automatic sales occur when leveraged positions hit predetermined price limits. Data from Coinglass shows that over $2 billion worth of crypto positions have been liquidated so far this week.
Institutional investors, once credited with helping support Bitcoin prices, appear to be pulling back. CryptoQuant reported that institutional demand has reversed significantly, with U.S.-listed ETFs turning into net sellers this year after heavy buying in 2025.
The firm also highlighted technical warning signs. Bitcoin recently slipped below its 1-year moving average for the first time since early 2022 and has fallen more than 20% since that break, a steeper drop than during the initial phase of the last bear market. According to CryptoQuant, the pattern points to further downside risk toward the $70,000 to $60,000 range.
Enterprises like Circle Internet Group Inc. (NYSE: CRCL) are likely to closely monitor the market’s behavior over the coming weeks in order to decipher whether a trend reversal has occurred and is likely to persist.
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