Bitcoin price sinks below $67,000 after Bessent says the US government can't tell banks to bail out crypto

Bitcoin (BTC-USD) dropped to $67,000 per token connected Thursday, falling to its lowest level since 2024 arsenic selling unit intensified.

The token extended losses from the anterior league aft Treasury Secretary Scott Bessent signaled that the US authorities would not measurement successful to enactment the cryptocurrency market.

In a heated back-and-forth during a House Financial Services Committee 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 stated.

Bitcoin fell to arsenic debased arsenic $67,073 apiece aboriginal Thursday, continuing Wednesday's slump that followed Bessent's comments.

The diminution was besides fueled by the broader selling unit successful markets and a 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 successful his Substack.

The determination little connected Thursday lone added to bitcoin's caller rout. The world's largest cryptocurrency is down astir 20% year-to-date.

Bitcoin dropped sharply past play to notch its 4th consecutive period of losses.

The determination little coincided with President Trump's announcement past Friday selecting Kevin Warsh to pb the Federal Reserve erstwhile Jerome Powell's word ends successful May, a information markets presumption arsenic hawkish.

Ether (ETH-USD) and different integer tokens besides slid.

Read more: How to navigate a crypto meltdown

After bitcoin earlier broke done the cardinal enactment level astatine $73,000, 10X Research strategists wrote that "current flows suggest sentiment has shifted meaningfully."

The firm's strategists pointed to travel and positioning data, which indicated "investors are not yet positioned to bargain the dip."

"While sentiment and method indicators are approaching utmost levels, the broader downtrend remains intact," the researchers wrote. "In the lack of a wide catalyst, determination is small urgency to measurement in."

The steadfast noted that traders stay focused connected deleveraging and unwinding their positions alternatively than connected preparing for a emblematic snapback rally.

Pressure connected integer assets reflected the broader fragility crossed the crypto market. Aside from a little bounce past month, bitcoin has struggled since October, erstwhile whale selling and forced liquidations swept done the industry.