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Bitcoin Cryptocurrency prices fell to their lowest level since October 2024 on Wednesday as tech stocks rebounded as the bear market dragged on.
Bitcoin price fell more than 4% to $59,548.19. Earlier, it hit a low of $59,023.98, the lowest since October 10, 2024.
This is the third time this year that Bitcoin has fallen below $60,000.
The flagship cryptocurrency is about eight months into a bear market, facing macroeconomic and industry-specific headwinds. Capital is circulating in AI stocks, hot IPOs, and prediction markets. Meanwhile, the Federal Reserve continues to focus on anti-inflation measures due to inflationary pressures stemming from the Iran war, creating a difficult backdrop for Bitcoin. And a widespread loss of confidence across crypto markets has led investors to question Bitcoin’s unique value proposition.
The market structure bill known as the CLARITY Act, which is a major turnaround for the broader crypto industry, has about five weeks to clear key legislative hurdles before Congress recesses for the summer. If this timing is missed, the bill is likely to be postponed until the fall.
Despite weak sentiment, Bitcoin’s decline has been milder than the overwhelming drawdowns that have characterized previous crypto winters. One big reason for this is increased participation by institutional investors, according to Sam Callahan, director of Bitcoin strategy and research at Bitcoin treasury firm OranjeBTC.
“People say this was the worst bull market and the best bear market,” said Sam Callahan, director of Bitcoin strategy and research at Bitcoin treasury firm Orange BTC. “What this really means is that Bitcoin is not as volatile as previous bear markets because of its investor base. Because Bitcoin is larger, more liquid, and more institutionalized than a small asset held by individuals, you will see lower volatility on both the upside and downside.”
Across Bitcoin ETFs, $182 million has been out of funds so far this week, marking the seventh consecutive week of net outflows. Bitcoin ETFs’ total assets fell to $77.5 billion from about $113 billion at the end of last year.
—CNBC’s Nick Wells and Gina Francola contributed reporting.
