Bitcoin

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.

In October last year, Bitcoin hit an all-time peak of more than $127,000 before falling back to about $90,000 in December.

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:

Why is the price of Bitcoin falling?

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.

“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.

Deutsche Bank analysts wrote in a note to clients this week that these ETFs “have seen billions of dollars flow out each month since the October 2025 downturn”, referring to investors in the funds cashing out of them.

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.

“This steady selling in our view signals that traditional investors are losing interest, and overall pessimism about crypto is growing,” the analysts said.

Adam Morgan McCarthy, product specialist at Kaiko, an organisation that provides crypto market data and analyses, told Al Jazeera: “The fall in Bitcoin prices has been largely tied to less interest in the markets and lower trading volumes. This leads to less liquidity, so any move higher or lower is exacerbated.”

He explained that the crypto market relies heavily on “hype-driven” cycles where people buy due to a fear of “missing out” on an opportunity.

“This hype forms the foundation of trading volumes, and that is what we mean by liquidity. Essentially, more trading volumes mean more liquidity, as it makes it easier to quickly buy and sell Bitcoin,” he said.

“Right now, that foundation is disappearing and this tends to happen during bear markets or ‘crypto winters’, making it much harder to effectively trade assets, and they become even less appealing then. So it’s quite a vicious circle that leads to these downward spirals,” he added.

A “crypto winter” is an extended period of declining or stagnant prices, something that can be driven by worsening macroeconomic conditions or tightening market regulations, among other reasons.

Volatility in gold and silver prices in the past two weeks has also dampened market sentiment, affecting the price of cryptocurrencies. Analysts say geopolitical instability and the prospects of a rising US dollar have led investors to sell precious metals, resulting in the sudden downturn.

Then, last week, prices came back sharply, with the price of gold hitting a record peak of almost $5,595 an ounce, while silver hit an all-time high of nearly $122.

But this peak did not last long, and this week, the prices of these precious commodities plunged – again – with gold falling to $4,872.83 per ounce on Thursday and silver falling to $77.36 an ounce.

Other cryptocurrencies like Ether, the second-largest cryptocurrency, have also fallen. The price of Ether has fallen by 19 percent this week, closing at $1,854 late on Thursday.

Does this mean ‘crypto-friendly’ policies in the US aren’t working?

The price of Bitcoin soared after United States President Donald Trump’s return to the White House last year, with analysts expecting he would adopt a “crypto-friendly” regulatory regime.

At a Bitcoin conference in July 2024, as part of his pre-election rally, Trump had said the US is the “crypto capital of the planet” and pledged to also create a Bitcoin “strategic reserve” if he became president.

In March 2025, on taking office, Trump announced his government would create a national strategic crypto reserve which would include five cryptocurrencies – Bitcoin and Ether as well as smaller currencies XRP, Cardano and Solana.

In July last year, Trump also announced the GENIUS Act, a new cryptocurrency legislation that would establish regulations and consumer protections for “stablecoin”, a type of cryptocurrency whose value is linked to a fixed currency or commodity.

Then, last month, the US also unveiled draft legislation that would create a regulatory framework for cryptocurrency, which, if signed into law, would clarify financial regulators’ jurisdiction over the cryptocurrency sector.

The US president has a personal interest as his family owns the cryptofirm World Liberty Financial (WLFI).

Last March, WLFI launched its own “stablecoin” – a dollar-pegged cryptocoin backed by US treasuries – called USD1.

But the president’s personal interest in cryptocurrencies and supportive policies have not shielded the digital asset from external market factors.

Have we seen ‘crypto winters’ before?

Yes.

A crypto winter was triggered after Bitcoin peaked in December 2017 and then tumbled in December 2018 due to intense regulatory crackdowns in the US, Canada and other countries, among other reasons.

Another such winter occurred in November 2022 after a peak in October 2021, due to the FTX currency exchange scandal. In November that year, crypto exchange FTX initiated US bankruptcy proceedings after a liquidity crisis prompted intervention from regulators around the world.

In a Thursday briefing note, analysts at Kaiko said the downward trend in prices “truly accelerated” after Trump appointed Kevin Warsh as the new Federal Reserve Chair.

Warsh will replace Jeremy Powell, who Trump has lambasted for not lowering interest rates.

The Kaiko briefing note stated: “Powell’s recent announcement on January 28th that interest rates would remain unchanged, combined with the appointment of the new Chairman, constituted a true turning point, acting as a catalyst for a sharp acceleration of the decline. The reaction was all the more pronounced given that the crypto market, particularly sensitive to changes in the macroeconomic regime, was already weakened,” the report said.

What will happen next?

Hougan noted that crypto winters typically last for about 13 months and assured investors that the current “winter” will not last for long.

“As a veteran of multiple crypto winters, I can tell you that the end of those crypto winters feels a lot like now: Despair, desperation, and malaise. But there is nothing about the current market pullback that’s changed anything fundamental about crypto,” he said in his report.

“I think we’re going to come roaring back sooner rather than later. Heck, it’s been winter since January 2025. Spring is surely coming soon,” he added.

The world’s most popular cryptocurrency has lost about one-third of its value since the start of the year.

Bitcoin has fallen sharply, racking up more losses after a tumultuous week for the world’s most popular cryptocurrency.

The digital currency was down nearly 14 percent on Friday morning, hovering at about $62,900 as of 01:00 GMT.

The slide continues a run of steep losses that kicked off last weekend, when the digital currency fell below $80,000.

After the latest tumble, Bitcoin, which is famed for its dramatic price swings, is down about one-third in value since the start of the year.

Bitcoin soared after United States President Donald Trump’s re-election raised expectations that Washington would adopt a crypto-friendly regulatory regime after years of crackdowns, with the digital currency hitting $100,000 for the first time in December 2024.

But the digital asset has largely been on a downward spiral since October, when it hit an all-time peak of more than $127,000, amid geopolitical and regulatory uncertainty.

A Trump-backed bill to regulate the trade of digital assets has stalled in the US Senate amid divisions between banks and cryptocurrency firms.

The Trump family’s cryptocurrency firm, World Liberty Financial, has also come under scrutiny in the US Congress after The Wall Street Journal newspaper reported that representatives of an Abu Dhabi official had signed a deal to invest $500m for a major stake in the venture.

Bitcoin’s latest tumble comes amid a heavy sell-off in global stocks and commodities.

Wall Street’s benchmark S&P 500 dropped 1.2 percent on Wednesday, while the tech-focused Nasdaq Composite fell about 1.6 percent.

Shares of tech giant Amazon plunged more than 11 percent in after-hours trading after its plans to invest $200bn in artificial intelligence-related infrastructure stoked fears of a tech bubble.

In the Asia Pacific, South Korea’s KOSPI plunged about 5 percent in early morning trading, while Australia’s ASX 200 and Japan’s Nikkei 225 were down more than 1 percent and 1.6 percent, respectively.

Precious metals, which have been on a volatile ride after racking up huge gains in 2025, also continued their recent streak of losses.

Gold was down more than 4 percent on Thursday, trading at about $4,720 an ounce.

Silver, which has seen even more dramatic price swings, fell as much as 18.5 percent, trading at about $69.

The world’s most popular cryptocurrency has fallen nearly 20 percent in value since the start of 2026.

Bitcoin has dropped below $71,000, adding to a week of losses that have wiped out all of its gains since United States President Donald Trump’s re-election in 2024.

The world’s most popular cryptocurrency fell more than 7 percent on Thursday, continuing a steep downward slide that began in mid-January.

Bitcoin, which is famed for its wild price swings, was trading at about $70,900 as of 04:30 GMT.

The latest slide takes the value of the digital asset down by nearly 20 percent since the start of the year.

Bitcoin hit $100,000 for the first time in December 2024 and breached that level again in February and May 2025. But the asset has largely been on a downward trajectory since October, when it hit an all-time high of more than $127,000.

Bitcoin and other digital currencies racked up explosive gains after President Trump’s re-election raised expectations of Washington adopting a light touch to regulating digital assets after years of regulatory crackdowns.

Trump had pledged to turn the US into the world’s cryptocurrency capital during his re-election campaign, and launched his own crypto firm, World Liberty Financial, along with his sons, before winning the vote.

Shortly after taking office, Trump announced the establishment of a strategic crypto reserve that would include Bitcoin and four other cryptocurrencies.

But a Trump-backed bill to regulate the trading of cryptocurrency has stalled in the US Senate amid disagreement between banks and cryptocurrency firms, casting doubt over the industry.

US Democratic Party lawmaker Ro Khanna said on Wednesday that he would investigate World Liberty Financial after The Wall Street Journal newspaper reported that representatives of an Abu Dhabi official signed a $500m deal to buy a 49 percent stake in Trump’s fledgling cryptocurrency venture.

Equities and commodities markets also saw losses on Thursday, with silver dropping as much as 16 percent and benchmark stock indexes in Hong Kong and Japan down about 1.3 percent and 0.7 percent, respectively.

Gold has risen more than 20% since the start of the year, surpassing the significant $5,500 milestone this week.

The precious metal’s rally, seen alongside a lift in commodities such as silver and platinum, is driven by a number of interlinking factors — including geopolitical tensions, rising government debt, and an uncertain outlook for interest rates and inflation.

Gold’s appeal is linked to the narrative that it is a safe haven asset, acting as a “hedge against inflation”. It typically increases in value when the dollar declines, it’s easily sold, and it’s also a tangible, finite commodity.

These factors are significant at a time when questions are being raised about the dollar, as well as fiat currencies like the Japanese yen. As government debt rises, so do fears around inflation and fiscal stability.

In the US, incendiary policies from the Trump administration are increasing market jitters around the health of the economy, prompting what some analysts view as a “sell America” trade. In recent weeks, the president has threatened to conquer Greenland, hinted at US intervention in Iran, sought to influence policy at the Federal Reserve, and launched an attack on Venezuela. To top that off, he’s also threatened more tariffs on trading partners, bringing back a well-worn tactic from 2025.

Although analysts argue that the dollar will not be unseated as the world’s reserve currency anytime soon, it seems investors are diversifying away from the greenback. The US’ next moves remain uncertain, and no one wants to be caught in the crosshairs. As an alternative to fiat currencies, gold may seem like a strong portfolio option.

“Investors previously bought US Treasuries as they were viewed as being quite risk-free. But especially because of the way that some wealth has been weaponised, certain countries are becoming more careful about how they allocate their capital,” said Simon Popple, managing director at Brookville Capital. “The dollar debasement helps the gold price,” he told Euronews.

Even so, Popple and other analysts stress that a major factor lifting the bullion price is far less complicated. As gold continues to make headlines, investors are caught up in the momentum, sparking a buying frenzy.

“People are naturally drawn to things they see moving and they’ve seen gold have an astonishing rally,” said Chris Beauchamp, chief market analyst at IG. “It’s bound to lead to an ignition of interest.”

He added that while gold has beneficial investment properties, the metal’s ability to hold its value is overstated, particularly in the short term. Gold’s position in the market notably shifted after former US president Richard Nixon decided to end direct dollar convertibility to gold in 1971. Put simply, countries no longer fixed their currencies to a specified amount of the precious metal.

“The gold standard is still invoked to suggest the metal is some kind of totemic asset we should have because it’s a fixed store of value. It’s not,” concluded Beauchamp.

Kenneth Lamont, a principal in Morningstar’s Manager Research Department, reiterated this message, also drawing comparisons between gold and crypto. While both are limited in supply, they are both “incredibly volatile”, he stressed.

“If you’re using either crypto or gold to buy something, it might be 30% less from one day to the next. It’s not actually a good store of value in the short term.”

While gold is much more established than bitcoin, and it has historically performed well over the long term, analysts stress that the unpredictability of both assets means the death knell is not yet ringing for fiat currencies.

Whether bullion’s price will continue to climb in the immediate future is a guessing game. Even so, given the precarious nature of global politics, it seems the metal may still have further to run.