Bitcoin is poised for a dismal weekly finish, with its price dropping to around $62,500 on Friday.
This represents a 50% decline from its all-time high of $126,000 set back in September 2025, a dramatic fall achieved in just ten months.
The last instance of Bitcoin trading below the $60,000 threshold dates back to September 2024.
The cryptocurrency market has yet to recover from the flash crash on October 10, which triggered the forced liquidation of over $19 billion in crypto assets; spot trading volumes have shrunk by 66% from their peak in January of this year.
Bitcoin's weakness persisted into early June, with the sell-off intensifying on Friday morning, setting the stage for a potential weekly loss exceeding 15%.
Market sentiment took a hit on Tuesday after the crypto-heavy public company, Strategy, made a small reduction in its Bitcoin holdings, pushing the price to its lowest level since early April.
Concurrently, Broadcom's disappointing revenue report on Wednesday sparked a sector-wide decline in semiconductors, ending a prolonged tech rally and adding further pressure to the crypto market indirectly.
Typical investor behavior of buying the dip to spark a Bitcoin rebound has been absent. The current price action near $62,500 marks a halving of its value from the September 2025 peak.
Bitcoin is now struggling to hold above the critical $60,000 psychological level, a support it last breached on September 18, 2024.
Institutional Perspectives
Charles-Henry Monchau, Chief Investment Officer at Swiss asset manager Syz, attributed the sharp weekly decline to a combination of two factors: Strategy's forced selling for liquidity and the ongoing diversion of speculative capital into other asset classes.
In an email to CNBC, he noted, "Global speculative capital is flooding into AI-themed stocks and memory chip sectors, particularly in South Korea. Coupled with several mega-company IPOs on the horizon, retail funds are being continuously diverted to new listings, further draining liquidity from the crypto market." He added that even positive industry news, such as the U.S. Senate passing the comprehensive Crypto Clarity Act, failed to lift prices.
Several strategists have pointed out a recent shift in the correlation between Bitcoin and U.S. tech stocks. While the linkage had been strengthening, Bitcoin failed to participate in the recent global tech surge, leading to a rapid decoupling.
Rajeev Sony, Global Head of Investment Research at digital asset manager Wave Digital Assets, stated, "A month ago, the 30-day Pearson correlation coefficient between Bitcoin and indices like the Nasdaq and S&P 500 was nearly perfectly positive, but it has plummeted in recent weeks. Global equity markets, especially tech stocks, are hitting new highs, while Bitcoin is charting its own downward course."
Some institutions, however, view the current downturn as a buying opportunity. Matt Cole, CEO of asset manager Strive, appearing on CNBC's "Squawk Box Europe" on Friday, argued that Bitcoin's fundamentals are historically strong.
"This is the fifth time Bitcoin is testing its 200-week moving average. The previous four touches of this average were all excellent opportunities to buy the dip, and history is likely to repeat itself this time," he said.
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