Bitcoin price plummets below $67,000: Key levels and investor sentiment shift
Bitcoin has fallen to just below $67,000, marking its lowest point since November 2024. This decline signals a dip in investor faith, challenging its status as a reliable hedge against inflation and a secure store of value. Following a sharp decrease from its October highs, analysts are closely watching the $70,000 threshold.
Bitcoin fell below $67,000 on Thursday, its lowest point since November 2024, as investor confidence in its utility as a store of value, inflation hedge, and digital currency faltered. This downturn follows a significant drop from its peak in early October and a 20% decline this week alone, with some analysts pointing to $70,000 as a key level that, if broken, could lead to further losses.
The cryptocurrency broke below the $70,000 mark earlier in the session on Thursday, after which selling pressure increased. Bitcoin is now down 47% from its record high reached in October. This decline signals a growing pessimism about crypto, with traditional investors reportedly losing interest.
"This steady selling in our view signals that traditional investors are losing interest, and overall pessimism about crypto is growing," Deutsche Bank analyst Marion Laboure said Wednesday in a note to clients. The failure of many sensationalized claims about bitcoin to materialize has contributed to this caution.
Bitcoin has largely traded in correlation with other risk-on assets, such as stocks, particularly during recent geopolitical and macroeconomic events. Its adoption as a form of payment for goods and services has also remained minimal.
In contrast to bitcoin's performance, gold has surged significantly over the past year. Bitcoin is down nearly 30% over the past year, while gold has seen a 68% increase in the same period.
Other cryptocurrencies are also experiencing substantial declines. Ether has pulled back 23% this week, on track for its worst week since November 2022. Solana hit $88.42 on Thursday, a two-year low and a 24% decrease on the week.
Analysts have identified $70,000 as a critical psychological level. "Some traders have suggested $70,000 is a key level to watch and a break below that could trigger further declines for bitcoin," the article states.
James Butterfill, head of research at Coinshares, elaborated on the significance of this level. "James Butterfill, head of research at Coinshares, said $70,000 is shaping up as a 'key psychological level,' adding that 'if we fail to hold it, a move toward' the $60,000 to $65,000 range 'becomes quite likely.'"
The current downward trend in bitcoin is occurring alongside a worsening sell-off in U.S. tech stocks. The Nasdaq Composite dropped 2.8% on Wednesday, following a 2.2% loss the previous day. Precious metals are also experiencing volatility, with silver plunging and gold under pressure.
Forced liquidations, where traders' positions are automatically sold as bitcoin hits a set price, continue to impact the markets. As of Thursday, over $2 billion in cryptocurrency positions, both long and short, have been liquidated this week, according to data from Coinglass.
Bitcoin has been in a steady decline for over three months, and is now more than 45% below its October high. Some other cryptocurrencies have seen even steeper drops.
Maja Vujinovic, CEO of digital assets at FG Nexus, commented on the shift in bitcoin's trading dynamics.
" '[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,' Maja Vujinovic, CEO of digital assets at FG Nexus, told CNBC's ' Worldwide Exchange .'"
Institutional demand, which was previously credited with supporting bitcoin's price, appears to have reversed. CryptoQuant reported on Wednesday that institutional demand has reversed materially.
U.S. exchange-traded funds, which were net buyers of 46,000 bitcoin last year, are now net sellers in 2026, according to CryptoQuant. The report also highlighted other concerning indicators.
"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," CryptoQuant analysts stated. A moving average is a technical indicator that smooths out price data over a specified period to identify trends.
The recent price action in bitcoin suggests a potential for further declines. "The latest leg lower in bitcoin suggests 'potential downside toward the $70K–$60K range,' CryptoQuant said."