Bitcoin has recorded its sharpest weekly decline since the collapse of the FTX exchange in 2022, sliding nearly 20% and falling below $61,000 amid renewed turbulence in digital asset markets.
The drop marks the cryptocurrency’s weakest performance since November 2022, when the failure of FTX triggered widespread panic across the sector. The latest downturn has also erased a significant portion of earlier gains, leaving bitcoin trading at roughly half its record high of more than $126,000 reached in October following a prolonged rally driven in part by investor optimism around pro-crypto policy signals from US President Donald Trump.
Market pressure intensified after Strategy, the largest corporate holder of bitcoin, disclosed that it had sold a small portion of its holdings. Although the sale was valued at about $2.5 million—minimal compared with its more than $50 billion stockpile—the announcement carried symbolic weight. Company chairman Michael Saylor had long maintained that the firm would never sell its bitcoin holdings, previously stating, “We’re not sellers. We’re only acquiring and holding.”
The reversal unsettled investors already grappling with weakening momentum in crypto markets. Analysts note that bitcoin has been under sustained pressure in recent months as outflows from exchange-traded funds reduced liquidity, while speculative capital increasingly shifted into alternative high-risk assets.
Additional strain has been attributed to broader market dynamics, including heightened attention around the upcoming Wall Street listing of SpaceX, Elon Musk’s aerospace and technology company. The IPO, expected to raise as much as $86 billion and value the firm near $1.8 trillion, is anticipated to draw substantial retail investor interest, potentially diverting capital away from cryptocurrencies.
Mark Dowding, chief investment officer for fixed income at RBC BlueBay Asset Management, said the decline reflects a cooling of enthusiasm in the sector. “It has been interesting to observe a sharp correction in the price of bitcoin and other digital assets as holders get bored by lacklustre returns in crypto and seek to jump on momentum,” he noted, adding that assets often struggle when they fall out of favour after periods of strong performance.
The sell-off has renewed concerns about volatility in the crypto market, particularly among retail investors. In the United Kingdom alone, around seven million adults are estimated to hold digital assets. However, regulators continue to warn that the sector remains largely unregulated and highly risky, with the Financial Conduct Authority repeatedly cautioning that investors should be prepared to lose all of their money.
The latest downturn has reignited debate over bitcoin’s long-term role in global finance, with analysts divided on whether it is evolving into a stable store of value or remaining a highly speculative asset driven by shifting market sentiment.
