Bitcoin has fallen roughly 50% over the past four months, sliding to around $60,000 and shaking investor confidence as institutional money exits the market and a broader retreat from risk assets gathers pace. The sell-off has coincided with heightened geopolitical uncertainty, heavy withdrawals from crypto-linked exchange-traded funds and renewed volatility across global markets.
The decline, which began in mid-January, has left traders questioning whether the world's largest cryptocurrency can find a near-term floor. Bitcoin's downturn has unfolded alongside gains in traditional safe havens, with gold and silver pushing to new highs, underscoring a shift toward defensive positioning.
Market participants point to a confluence of macro and political factors weighing on sentiment. Uncertainty over global trade, foreign policy and economic direction in Washington has encouraged investors to trim exposure to higher-risk assets, a category in which cryptocurrencies increasingly sit alongside growth-oriented equities.
A central driver of the slump has been institutional selling. Analysts at Deutsche Bank said the move lower has been fueled by "massive withdrawals from institutional ETFs," highlighting how quickly professional investors have reduced exposure. Because such products provide streamlined access to bitcoin, redemptions can translate rapidly into selling pressure in underlying markets.
ETF outflows matter disproportionately for bitcoin, traders say, because liquidity can thin quickly during periods of stress. As funds pull capital, price declines can accelerate, reinforcing negative momentum and deterring fresh inflows at a time when confidence is already fragile.
The crypto downturn has also tracked weakness in technology stocks. The Nasdaq Composite has fallen nearly 5% over the past week, extending losses for growth assets. In recent years, bitcoin has traded with a higher correlation to tech shares as institutional investors have treated digital assets as part of the same risk bucket.
Political and regulatory uncertainty has added another layer of caution. Shifts in tone around U.S. economic policy and digital-asset oversight have left investors unsure how supportive the next phase of regulation will be. Even measures viewed as favorable to crypto have struggled to offset broader concerns about liquidity tightening and policy unpredictability.
The slide in bitcoin has rippled across crypto-linked equities. Shares of Robinhood fell about 10% in the latest session and are down roughly 36% this year, reflecting waning retail activity. Coinbase has also come under pressure, dropping from about $236 at the start of the year to near $146 after recent declines.
