Odaily Planet Daily reports: Bitcoin recently fell below $60,000, marking its worst weekly performance since the collapse of the FTX exchange in 2022. Over the seven days ending last Sunday, Bitcoin declined by 16%, retreating more than 50% from its all-time high of over $126,000 in 2025.
Several market analysts have warned that the current rally may be difficult to sustain, and Bitcoin may not yet have reached the bottom of this cycle. Griffin Ardern, co-founder of Primal Fund, stated that the market is still far from a "true bottom."
Data shows that U.S. spot Bitcoin ETFs have recorded net outflows for 13 consecutive trading days, with a total outflow of approximately $5.5 billion. Meanwhile, Bitcoin fell below the 200-week moving average last week—a level widely regarded as a key support level—further eroding market confidence. Paul Howard, Senior Executive at crypto trading firm Wincent, described the current market conditions as a “silent bear market,” noting that the breakdown below the 200-week moving average serves as a significant confirmation that the market has entered a bear phase.
Analysts note that the ongoing conflict between the U.S. and Iran, a reversal in expectations for Fed rate cuts, and strong U.S. employment data are driving markets to reprice interest rate expectations; a high-rate environment is unfavorable for risk assets, including cryptocurrencies. Additionally, some capital is flowing from the crypto market into the artificial intelligence and technology stock sectors.
Nevertheless, this correction has been smaller than historical bear market cycles. In previous bear markets, Bitcoin typically retraced about 80% from its peak, whereas this decline has been approximately 50%. Some traders believe that if the macroeconomic environment continues to deteriorate and companies holding large amounts of Bitcoin face funding pressures, the market could still face further downside risk. (Bloomberg)