Bitcoin (BTC) is again losing steam as its price drops below $60,000 U.S. and hits the lowest level of the year.
In late trading on June 24, Bitcoin’s price dropped to 59,548.19 U.S., its lowest level since Oct. 10, 2024.
The largest cryptocurrency by market capitalization has since rebounded overnight and risen back above the key support level of $60,000 U.S.
In early trading on June 25, Bitcoin’s price was hovering at $61,300 U.S. However, analysts say sentiment and demand for digital assets remains weak and further declines could be ahead.
This is the third time this year, and second time in June, that Bitcoin’s price has slid below $60,000 U.S.
The latest issue impacting cryptocurrencies appears to be a pullback in technology stocks, particularly those with exposure to the artificial intelligence (A.I.) trade.
Tech stocks have swung between big gains and losses in recent days, with the Nasdaq (NDAQ) Composite index falling nearly 1,000 points to start the week.
Analysts say that Bitcoin and other cryptocurrencies are dropping alongside technology stocks as investors turn more cautious and shift capital to more defensive securities.
Bitcoin is now in an eight-month bear market, with its current price less than half the record high of just over $126,000 U.S. seen last October.
Cryptocurrencies, which also include Ethereum (ETH) and Solana (SOL), are being hurt by a combination of macroeconomic and industry-specific headwinds.
Bitcoin exchange-traded funds (ETFs) have seen $182 million U.S. in withdrawals so far this week and are on pace for their seventh consecutive week of outflows.
Total assets held in about a dozen U.S. Bitcoin ETFs have declined to $77.5 billion U.S. from $113 billion U.S. at the end of 2025.
The biggest near-term catalyst for crypto appears to be the market structure legislation known as the “CLARITY Act” that is winding its way through the U.S. Congress.
However, it looks doubtful that the CLARITY Act will pass into law before Congress’ summer recess, pushing it off to the autumn legislative session.
