Bitcoin sharply declined on Wednesday night (24 June), briefly falling below $60,000 per coin to its lowest level since October 2024. This followed a major sell-off in technology stocks, while the crypto market remains stuck in a prolonged bear market.
Bitcoin's price on the morning of 25 June dropped more than 3%, then rebounded to $60,768.63 per coin, according to data fromCoinMarketCap.Earlier that day, it had touched a low of $59,029.86, the lowest since 10 October 2024, marking the third time this year the price fell below $60,000.
As a result, Bitcoin has been in a bear market for about eight months, facing pressure from both macroeconomic factors and crypto industry-specific issues.
Recently, substantial investment funds have flowed out of crypto markets into popular assets such as AI stocks, hot IPO shares, and prediction market platforms that forecast various events.
Meanwhile, inflation pressures influenced by the Iran war have led the U.S. Federal Reserve (Fed) to prioritize inflation control, creating an investment environment unfavorable to risky assets like Bitcoin.
Additionally, declining confidence in the overall crypto market has prompted many investors to question Bitcoin's unique value and its long-term strength.
Another key factor under market scrutiny is the U.S. CLARITY Act, a crypto market structure bill seen as a crucial hope for the industry at this time.
However, this bill has only about five weeks left to pass important legislative steps before Congress adjourns for summer. Failure to do so could delay consideration until the fall session.
Furthermore, Bitcoin ETF funds continue to face ongoing sell-offs. Since the start of this week, approximately $182 million has flowed out, with net outflows expected for a seventh consecutive week.
This has caused the total assets under management (AUM) in Bitcoin ETFs to decline to $77.5 billion from about $113 billion at the end of last year, reflecting increased institutional investor caution amid a crypto market still lacking positive short-term catalysts for recovery.
Although the current investment climate is rather sluggish, Bitcoin's recent decline is not as severe as previous bear markets.
According to a report byCNBC,which interviewed Sam Callahan, Director of Bitcoin Strategy and Research at crypto asset management firm OranjeBTC, the main reason is the growing role of institutional investors in the market.
He noted that many say, “This is the worst Bull Market but the best Bear Market,” indicating Bitcoin today is less volatile than in past bear markets due to a larger, more liquid investor base that no longer relies mainly on retail investors.
“Bitcoin has become a more institutional asset, so we see reduced volatility both on the ups and downs,” Callahan said.
Source:CNBC,CoinMarketCap
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