Bitcoin experienced another decrease on Thursday, as it dropped under the $67,000 level, which demonstrated to investors that Bitcoin still needs to establish its status as a secure digital asset.
The world’s largest cryptocurrency continued its recent decline because investors lost faith in Bitcoin’s ability to protect against inflation, market unrest, and all other current conditions.
From Record Highs to Reality Check
The atmosphere surrounding cryptocurrency has experienced dramatic changes since Bitcoin reached its peak value of $126,000 during October. What was once pitched as a hedge against macro uncertainty has instead traded like a high-beta risk asset, which is moving largely in sync with stocks during periods of geopolitical tension and economic stress.
The price of bitcoin dropped to approximately $67,6755 on Thursday, which marked its lowest point since November 2024. Also, it had first dropped under the important $70,000 level, which resulted in increased trading activity.
Bitcoin’s Shine is Fading
The current situation presents crypto bulls with one of their most challenging comparisons. Bitcoin has dropped almost 30% during the last year, while gold has increased 68% during that same time frame.
The increasing distance between the two assets creates doubts about bitcoin’s ability to function as a store of value, as businesses still do not accept it for regular transactions.
The steady selling pattern indicates that traditional investors are losing interest in digital assets, as observed by Deutsche Bank analyst Marion Laboure, who also explained that this pattern shows growing pessimism about cryptocurrency.
He said,
“This steady selling in our view signals that traditional investors are losing interest, and overall pessimism about crypto is growing”.
Crypto Markets Fall
Along with Bitcoin, other cryptocurrencies suffer as well. Ether has dropped 23% this week, which marks its worst performance since late 2022. Also, Solana reached $88.42, which is its lowest point in about two years.
The traders issued a warning about the $70,000 support level, which they believe will lead to further price drops. As per CoinShares’ James Butterfill, the price range between $60,000 and $65,000 serves as the next landing zone, which bull traders did not anticipate when the year started.
Institutional Demand
The most alarming indicator exists because institutional demand has completely reversed its direction. The CryptoQuant data shows that U.S bitcoin ETFs, which previously purchased aggressively, have switched to becoming net sellers in 2026.
“Institutional demand has reversed materially”.
The bitcoin price dropped below its 365-day moving average for the first time since 2022. This technical development shows that deeper market downturns will follow. Also, the forced liquidations, which exceeded $2 billion this week, create a significant selling pressure in the market.
CryptoQuant analysts said,
“Bitcoin has broken below its 365-day moving average for the first time since March 2022 and has declined 23% in the 83 days since the breakdown — worse than the early 2022 bear phase”.
Bottom Line
Maja Vujinovic of FG Nexus said,
”[The] straight line bull run that a lot of people expected hasn’t really materialized yet. Bitcoin isn’t trading on hype anymore, the story has lost a bit of that plot, it is trading on pure liquidity and capital flows”.
The current Bitcoin downturn proves that people realize the market will not produce the expected straight-line bullish run, which they based on market speculation. The current cryptocurrency value depends on liquidity markets, capital flows, and investor willingness to hold assets, which are now unavailable.
The current market decline will either lead to a brief pause or an extended period of identity confusion for Bitcoin, but its status as digital gold now shows clear signs of decline.
