- BTC falls below $63,000, lowest since October 2024
- Ethereum and other major coins record sharp losses
- Trust in bitcoin as a hedge continues to fade
- US tech stock sell-off drags risk assets lower
Bitcoin price has dropped below $63,000, hitting its lowest level since October 2024, as investor confidence in the cryptocurrency market continues to weaken. The decline reflects growing concerns over volatility, inflation fears, and bitcoin’s long-term role as a store of value.
Bitcoin, the world’s largest cryptocurrency by market capitalisation, fell sharply on Thursday, sliding below the $63,000 mark amid a broad sell-off across global risk assets.
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Data from CoinMarketCap showed that bitcoin traded at $62,965, representing a 13.9 per cent drop as of 10:20 p.m. The decline marks bitcoin’s weakest price level in more than three months.
Market watchers say the latest fall signals waning investor confidence, especially as bitcoin struggles to maintain its reputation as an inflation hedge and alternative digital currency.
The cryptocurrency has now remained on a downward path for over three months and is trading more than 45 per cent below its October peak. Over the past year alone, bitcoin has reportedly lost around 45 per cent of its value, highlighting the persistent volatility in the digital asset space.
Ethereum, the second-largest cryptocurrency by market capitalisation, was not spared. The token fell 13 per cent to $1,863, deepening losses across the broader market.
According to CoinMarketCap, the global cryptocurrency market capitalisation dropped to $2.19 trillion, while total trading volume rose to over $263 billion as of 10:00 p.m. on Thursday.
Analysts have linked the sell-off to a wider decline in United States technology stocks, which has weighed heavily on high-risk assets worldwide.
“Crypto assets are reacting sharply to weakness in US tech stocks, as investors move away from risk,” a market analyst said.
Bitcoin’s struggles come after a dramatic rally earlier in the year. On October 5, the cryptocurrency surged to an all-time high above $125,000, gaining nearly 97 per cent from levels around $62,000 earlier in October 2024.
However, the rally was short-lived. Within days, bitcoin plunged to about $112,000, wiping out billions of dollars in market value and once again exposing the extreme volatility that continues to define the cryptocurrency industry.