Bitcoin declined sharply, falling below $60,000 as the unwinding of leveraged positions and widespread market instability intensified a sell-off that has erased all the gains accumulated since the election of President Donald Trump sparked a speculative frenzy in cryptocurrencies.
Crypto shares slid in after-hours trading. IREN down 19%; Cipher Mining down 12%; CleanSpark down 11%; Bitfarms down 10%; Upexi down 6%.
The digital asset dropped as much as 14% on Thursday to $62,267, its lowest level since October 2024. This downturn has eliminated half of Bitcoin's value since it peaked four months ago and has adversely affected other digital tokens, related ETFs, and firms such as Strategy Inc. that hold significant coin reserves.
This decline represents a sharp reversal from Bitcoin's rapid ascent throughout much of the previous year, which was fueled by the return of a crypto-supportive Republican administration, prompting investors to flood into digital assets and the Wall Street products created around them. The market began to falter this month as escalating geopolitical conflicts rattled global financial markets and reduced appetite for risk. This triggered Bitcoin's steep fall from mid-January, initiating a self-perpetuating cycle of selling as funds liquidated holdings to meet investor redemptions and close out leveraged bets.
"Market-wide fear and uncertainty are clearly visible," stated Chris Newhouse, head of business development at Ergonia. "In the absence of confident buyers stepping in during sell-offs, each wave of ETF redemptions and liquidations creates a domino effect." He noted this dynamic "magnifies the extent of each price decline and strengthens defensive postures, which keeps genuine organic demand out of the market."
The current slide is reminiscent of the 2022 downturn, when prices fell sharply from their pandemic-era peaks as the Federal Reserve began tightening monetary policy. The fallout is already impacting intermediaries such as Coinbase Global Inc., whose stock has fallen over 30% this year, and Gemini Space Station Inc., which announced plans to reduce its workforce by up to 25% and cease operations in the UK, European Union, and Australia.
Currently, Bitcoin and other cryptocurrencies are also confronting competition from alternative speculative avenues, including legalized sports betting and prediction markets covering events from politics to entertainment. Concurrently, retail investment flow is increasingly directed towards zero-day options in equities and higher-yield cryptocurrency opportunities on decentralized exchanges.
This latest price drop occurs amid persistent skepticism regarding the practical utility of digital assets. Initially promoted as a hedge against inflation or a competitor to gold or the US dollar as a stable store of value, Bitcoin has consistently behaved more like a high-risk asset and has not functioned as a safe haven during periods of financial market stress. Its increasing inclusion in institutional portfolios has, at times, rendered it more susceptible to widespread de-risking, especially during volatility in technology stocks and precious metals, as observed in recent weeks.
"Momentum is currently driving the market, and crypto bear markets typically conclude with apathy rather than despair," said Ryan Rasmussen, director and head of research at Bitwise Asset Management.
"We are presently in the despair phase of the decline," he added. "That momentum has taken control."
Inflows into US spot-Bitcoin ETFs provided a key support pillar for much of 2025, with tens of billions of dollars entering these products and helping to sustain the token's price. However, these flows have reversed as prices have collapsed—data compiled by Bloomberg indicates approximately $2 billion has been withdrawn from Bitcoin ETFs in the past month alone. The outflow is even more pronounced over a three-month period, exceeding $5 billion.
The downturn of the leading cryptocurrency has sent shockwaves through the digital asset ecosystem, with smaller, less liquid speculative tokens experiencing even steeper declines. The MarketVector Digital Assets 100 Small-Cap Index, which tracks the 50 smallest assets within a basket of 100, has fallen roughly 70% over the past year.
Traders are adopting increasingly defensive strategies in the options market, with a notable rise in demand for protection against prices falling to around $70,000. Data from Deribit shows that medium-term contracts, like those expiring in late June, indicate a more pessimistic outlook, with the highest open interest concentrated around strike prices of $60,000 and $20,000.
Ilan Solot, senior global markets strategist at Marex, attributed the recent sell-off to multiple factors, including weakness in certain technology stocks, gold's strong performance, a broad risk-off sentiment, and fundamental questions about the valuation frameworks for cryptocurrencies.
"The outlook likely remains bearish for the time being, but the worst may be over," he commented. "Nevertheless, historically, such market movements have always presented buying opportunities for long-term investors, and many will perceive it that way."
Comments