Bitcoin Slumps Below $60K for Third Time This Year

Bitcoin prices dropped to their lowest level since October 2024 on Wednesday, trading at $59,548.19 after a decline of over 4%. The flagship cryptocurrency has now traded below $60,000 for the third time this year.

The bear market, which is in its eighth month, is being squeezed by both macroeconomic and industry-specific headwinds. Capital is rotating into AI stocks, hot IPOs, and prediction markets, while inflationary pressures are keeping the Federal Reserve focused on combating inflation.

Sam Callahan, director of bitcoin strategy and research at OranjeBTC, believes that the increase in institutional participation has led to a more muted decline than previous crypto winters. He notes that bitcoin's investor base is now larger, more liquid, and less volatile due to its increased institutionalization.