Bitcoin Breaks Important Technical Levels
Bitcoin briefly dropped below $61,000 on Thursday night amid heavy trading pressure. The token hit a low of $60,062 before beginning to stabilize. By evening, it was trading near $62,448, marking a sharp daily decline.
Earlier in the session, Bitcoin decisively broke below the $70,000 level. That breakdown accelerated selling momentum across global exchanges. Weekly losses are now approaching 30%.
Digital Gold Narrative Faces Growing Doubts
Bitcoin has long been described as digital gold and an inflation hedge. Recent performance has weakened that narrative among investors. The asset has not behaved like a traditional safe haven.
Prices have steadily declined since surpassing $126,000 in early October. Rising market volatility eroded confidence. Many investors are reassessing long-term crypto allocations.
Selloff Mirrors Broader Tech Market Weakness
Cryptocurrency declines coincide with renewed weakness in U.S. technology stocks. The Technology Select Sector SPDR ETF fell again on Thursday. That marked its third consecutive losing session.
Risk-sensitive assets remain pressured by macroeconomic uncertainty. Expectations of prolonged higher interest rates have dampened speculative flows. Bitcoin continues trading in correlation with growth equities.
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Analysts Cite Rising Investor Pessimism
Marion Laboure of Deutsche Bank highlighted growing skepticism among traditional investors. She noted that sustained selling reflects waning enthusiasm for digital assets. Overall sentiment appears increasingly cautious toward crypto markets.
Bitcoin has largely moved in tandem with equities in recent sessions. Adoption as a mainstream payment method remains limited. Geopolitical tensions have not strengthened its defensive appeal.
Bitcoin Underperforms Precious Metals
Over the past year, Bitcoin has declined nearly 40%. During the same period, gold futures rose approximately 61%. The divergence underscores shifting investor preferences.
Other major cryptocurrencies posted steeper losses this week. Ether dropped around 33%, while Solana reached a two-year low. Broad weakness intensifies concerns about sector fragility.
Forced Liquidations Increase Volatility
Automated liquidations amplified the downward move across exchanges. More than $2 billion in long and short positions were unwound. Threshold breaches triggered cascading sell orders.
Bitcoin now trades over 50% below its October peak. Technical indicators signal deteriorating market structure. Analysts warn volatility could persist if key support levels fail.
Institutional Demand Reversal Raises Alarm
Institutional investors previously supported prices through exchange-traded funds. Recent data suggests these participants have shifted to net selling. CryptoQuant reports notable changes in demand patterns.
Bitcoin has fallen below its 365-day moving average. Analysts compare the breakdown to early 2022 bear market signals. Price action appears increasingly driven by liquidity dynamics.
