Bitcoin’s drop is part of a bigger market shift. Here’s what to know

Bitcoin’s slide accelerated on Thursday, falling below $66,000 for the first time in more than a year as investors rushed out of their holdings.

The world’s largest cryptocurrency fell more than 10% on Thursday alone and is now down about 20% this week — a sharp reversal from last fall, when bitcoin was flirting with record highs and optimism around crypto was everywhere. The latest decline pushes bitcoin to its lowest level since late 2024 and extends a months-long slowdown that has erased nearly half of its value since October.

The sell-off comes alongside broader market woes, with technology stocks falling and investors increasingly seeking refuge in old-fashioned safe havens like gold and government bonds.

Once bitcoin fell below $70,000, a level many traders were watching closely, the selling accelerated. Automated liquidations were triggered, abandoning positions as prices fell and fueling the decline. Billions of dollars in crypto bets have been wiped out in recent days, according to market data.

Other major cryptocurrencies plunged even harder, and stocks linked to the crypto ecosystem, from exchanges to trading platforms, slid alongside them.

Bitcoin is a digital currency that exists entirely online. It was created in 2009 as a decentralized alternative to government-issued currency, designed to allow people to send payments directly to each other without relying on banks or financial intermediaries.

Instead of being printed or controlled by a central authority, bitcoin is created through a process called “mining,” in which powerful computers compete to verify transactions on a public ledger known as the blockchain. This ledger records every Bitcoin transaction ever made and is managed by a global network of computers.

Although real-world adoption (paying with cryptocurrencies) remains limited, bitcoin has been touted by some as a crisis-proof asset for years. This latest slowdown forces us to rethink.

With confidence in cryptocurrencies shaken, some analysts warn that bitcoin could fall further if sales continue.