Bitcoin Plunges $2 Trillion in Value as Price Hits New Lows

The year has been bleak for Bitcoin, which has lost over $2 trillion from its market capitalization since its October peak at around $126,000. The price of Bitcoin is now below $60,000 and has fallen by more than 30% so far this year.

This decline has had a ripple effect on the broader crypto industry, with spot bitcoin funds experiencing outflows of over $4 billion through June 25. Major players such as Coinbase, Circle, and Bullish have also seen their stock prices drop by at least 7% year-to-date.

The situation is attributed to Bitcoin's failure to live up to its image as a high-risk asset and a hedge against market volatility. Momentum chasers are now turning to other assets such as AI-linked stocks, gold, oil-linked assets, and the SpaceX IPO. Value investors, however, see this as an opportunity to buy in at low prices.