Bitcoin has fallen to its lowest level in 21 months, dropping to approximately $58,000 as investors grapple with the prospect of higher interest rates and waning confidence in major corporate buyers.
The decline marks a significant deterioration in sentiment for the leading cryptocurrency, which has now lost more than 50% of its value from its record high above $126,000 set in October last year.
The price action has pushed Bitcoin below its 200-week moving average, a technical threshold that traders often interpret as a signal of a prolonged bear market.
This breakdown comes amid persistent selling pressure from exchange-traded funds, which had been expected to provide a buffer during market downturns.
Instead, the theory that spot Bitcoin ETFs would act as a shock absorber is facing its most significant test yet, with outflows continuing to suppress risk appetite.
Elevated interest rates remain a headwind for speculative assets, as higher borrowing costs reduce the appeal of non-yielding investments like cryptocurrency.