"Bitcoin has been on a downward spiral since last October as the hype' over crypto wanes. Crypto markets came under pressure this week when the price of the world's most popular cryptocurrency, Bitcoin, tumbled to its lowest level in more than a year. On Thursday afternoon, the price of Bitcoin fell below $66,000 and was hovering at about $62,900 on Friday morning. The fall in the price of the digital asset kicked off in the last weekend of January, when it fell below $80,000."
"Institutional demand has reversed materially, CryptoQuant, an organisation which provides analysis of global markets to cryptocurrency investors, wrote in a report on Wednesday. The report noted that US exchange-traded funds (ETFs) a form of pooled investment which had been buying up Bitcoin last year, are selling it this year. Furthermore, they added that specialised US spot Bitcoin ETFs suffered outflows of more than $3bn in January this year, following outflows of about $7bn and $2bn in November and December 2025, respectively."
"Following its latest tumble, Bitcoin is currently down by about 30 percent more since the start of the year. Here's what we know about what's going on in the world of cryptocurrency: Volatility in other markets is one of the main drivers. Analysts say a sell-off of global stocks amid geopolitical uncertainty and recent volatility in the price of gold and silver are part of the reason for the drastic fall in the price of Bitcoin."
Bitcoin has fallen from an October peak above $127,000 to levels below $66,000 and around $62,900, with the decline accelerating after late January when it dropped under $80,000. The cryptocurrency is about 30 percent down since the start of the year. Market volatility, including a sell-off in global stocks and swings in gold and silver prices, has pressured Bitcoin. Institutional demand has reversed as US spot Bitcoin ETFs moved from heavy buying into sustained outflows, with specialised US spot ETFs recording multi-billion-dollar withdrawals in recent months, signaling waning traditional investor interest.
Read at www.aljazeera.com
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