Written by Frode Skar, Finance Journalist.
Bitcoin drops below 67,000 dollars as selling accelerates and doubts grow about crypto’s role
A sharp shift in sentiment across the crypto market
Bitcoin fell below 67,000 dollars on Thursday for the first time since November 2024, as selling pressure intensified and investor confidence in the asset continued to erode. The move marks a clear change in market mood toward a cryptocurrency long promoted as digital gold, an inflation hedge and an alternative to traditional currencies.
The latest decline comes after bitcoin peaked just above 126,000 dollars in October. Since then, the price has trended steadily lower for more than three months, reflecting growing skepticism about the practical utility of crypto assets in a shifting macroeconomic environment.
A break below a critical psychological level
During Thursday’s session, bitcoin first slipped under the closely watched 70,000 dollar level. Once that support failed, selling accelerated sharply, pushing prices toward the mid 67,000 range. On a weekly basis, bitcoin is now down roughly 20 percent, an unusually steep decline even by crypto market standards.
Many analysts had identified 70,000 dollars as a key psychological threshold. A decisive break below that level triggered additional sell orders and forced liquidations, amplifying downward momentum.
Confidence fades in bitcoin as a store of value
Underlying the price action is a broader reassessment of bitcoin’s investment narrative. Several of the arguments that once supported long term demand are being questioned. Rather than acting as a hedge during periods of geopolitical tension and macroeconomic uncertainty, bitcoin has largely moved in tandem with other risk assets, particularly equities.
At the same time, adoption of bitcoin as a medium of exchange for goods and services remains limited. This weakens the case for bitcoin as a functional alternative to fiat currencies or traditional safe havens such as gold.
Clear underperformance versus gold
The contrast with precious metals has become increasingly stark. Over the past year, bitcoin is down close to 30 percent, while gold has gained roughly 68 percent over the same period. This divergence has reinforced capital flows away from digital assets and toward more established stores of value.
Although precious metals have also experienced bouts of volatility, they have not suffered the same sustained and deep drawdowns seen across the crypto sector.
Broad weakness across digital assets
The sell off has not been confined to bitcoin. Other major cryptocurrencies have fallen even more sharply. Ether is down more than 20 percent this week, on track for its worst weekly performance since late 2022. Solana has dropped to levels not seen in nearly two years, while XRP has posted double digit percentage losses over the same period.
Taken together, these moves point to a broad reduction in risk appetite, with investors cutting exposure to digital assets as a group rather than rotating between tokens.
Forced liquidations intensify downside pressure
A key technical factor behind the sharp declines has been forced liquidation activity. As leveraged positions are automatically closed once certain price thresholds are reached, selling pressure increases rapidly. Market data show that more than two billion dollars in long and short crypto positions have been liquidated so far this week.
Such dynamics often lead to abrupt price swings, particularly during periods of heightened uncertainty and reduced liquidity.
Weakness mirrors declines in risk assets
Bitcoin’s latest leg lower has coincided with a sell off in US technology stocks. Several technology focused indices and funds have recorded consecutive daily losses, contributing to a broader rise in risk aversion across financial markets.
This correlation reinforces the view that bitcoin continues to trade as a high risk asset rather than as an independent store of value insulated from traditional market cycles.
Institutional demand shows signs of reversal
Another notable development is the apparent retreat of institutional investors. While large institutions were previously credited with supporting bitcoin prices, recent data suggest that these participants have shifted from net buyers to net sellers.
US listed exchange traded funds that accumulated significant amounts of bitcoin a year ago have been net sellers in 2026. Bitcoin has also fallen below its 365 day moving average for the first time since 2022, a technical signal often interpreted as bearish for medium term price trends.
Liquidity replaces narrative driven trading
Market participants increasingly argue that bitcoin is no longer trading on grand narratives or hype. Expectations of a straight line bull run have faded, and price movements now appear to be driven primarily by liquidity conditions and capital flows.
This shift leaves the market more vulnerable to sudden changes in sentiment and external shocks, particularly in an environment of tightening financial conditions.
What comes next for bitcoin
Analysts warn that if current support levels fail to hold, bitcoin could slide further toward the 60,000 to 65,000 dollar range. Whether that scenario materializes will depend on broader market developments and on whether bitcoin can regain credibility as a diversifying asset.
For now, the crypto market remains dominated by caution, declining confidence and a renewed focus on downside risk. The current phase stands in stark contrast to the optimism that prevailed just months ago.
