Bitcoin nears $67,000, hitting lowest level since October 2024

Bitcoin (BTC-USD) tumbled adjacent to $67,000 connected Thursday, touching its lowest level since October 2024.

The token is down much than 45% from past year’s all-time high, erasing each of the gains made during President Trump’s 2nd term. Investors had been optimistic the administration’s crypto-friendly policies would assistance digital-asset prices.

Despite the aggravated selling, immoderate bitcoin strategists accidental the token whitethorn not person reached a bottommost yet.

"Bitcoin remains successful a larger bear-market structure," work a 10X Research enactment connected Thursday. "In the lack of a beardown catalyst and with positioning inactive stretched, downside risks stay elevated."

Notably, the steadfast points to a important overhang — overexposed bitcoin ETF holders who are underwater, with an estimated mean acquisition terms adjacent $90,000.

A akin dynamic is playing retired with Ethereum (ETH) ETFs, arsenic investors are down astir 31% fixed their mean outgo basis, according to 10X Research data.

"Under these conditions, attracting incremental allocations from Wall Street investors becomes progressively difficult, peculiarly erstwhile galore existing holders apt regret not reducing vulnerability astatine importantly higher levels," 10X said successful a note.

Bitcoin sank arsenic debased arsenic $67,235 connected Thursday, continuing a deepening sell-off connected Thursday aft Treasury Secretary Scott Bessent suggested the US authorities would not bail retired the cryptocurrency.

In a heated back-and-forth during a House Financial Services Committee proceeding connected Wednesday, Bessent was asked if the US Treasury had the authorization to bargain bitcoin oregon different cryptos.

"I bash not person the authorization to bash that, and arsenic seat of FSOC, I bash not person that authority," Bessent said.

Bitcoin's diminution was besides fueled by the broader selling unit successful markets and an earlier informing from notable capitalist Michael Burry that a sustained diminution successful bitcoin's terms could "set successful question a decease spiral starring to monolithic worth destruction."

"Bitcoin has been exposed arsenic a purely speculative asset, and is not adjacent the debasement commercialized hedge that golden and different precious metals are," Burry, who roseate to prominence aft predicting the 2008 fiscal crisis, wrote connected his Substack earlier this week.

The token is down astir 22% year-to-date with selling unit intensifying past play aft Kevin Warsh was nominated arsenic the adjacent Fed chair, a determination wide viewed arsenic hawkish for cryptocurrencies.

In January, bitcoin recorded its 4th consecutive monthly loss.

Ines Ferre is simply a elder concern newsman for Yahoo Finance. Follow her connected X astatine @ines_ferre.