Bitcoin drops below $67,000 as sell-off intensifies and pessimism grows about the crypto’s function

Bitcoin sank below $67,000 on Thursday as investor confidence continued to falter in the asset once hailed as “digital gold” and a unique store of value.

Digital assets, including bitcoin, have fallen deeper into the red as investors re-assess the practical utility of a token that has been championed not only as a hedge against inflation and macroeconomic uncertainties but also as an alternative to fiat currencies and traditional safe-havens such as gold.

That hasn’t panned out lately, since bitcoin peaked just north of $126,000 in early October.

On Thursday, bitcoin was last down to $67,675, its lowest since since November 2024. The cryptocurrency broke below $70,000 earlier in the session Thursday and then the selling increased. The cryptocurrency is down 20% this week alone and off 47% from its record last October.

“This steady selling in our view signals that traditional investors are losing interest, and overall pessimism about crypto is growing,” Deutsche Bank analyst Marion Laboure said Wednesday in a note to clients.

Growing investor caution comes as many of the sensationalized claims about bitcoin have failed to materialize. The token has largely traded in the same direction as other risk-on assets, such as stocks, particularly during recent geopolitical and macroeconomic flare ups in Venezuela, the Middle East and Europe, and its adoption as a form of payment for goods and services has been minimal.

Bitcoin underperforming gold

Bitcoin is down nearly 30% over the past year, while gold has surged 68% in the same period.

Other cryptocurrencies are cratering too. Ether has pulled back 23% this week, also on track for its worst week since November 2022, when it slumped 24%. Solana hit $88.42 on Thursday, about a two-year low and off 24% on the week.

Some traders have suggested $70,000 is a key level to watch and a break below that could trigger further declines for bitcoin.

James Butterfill, head of research at Coinshares, said $70,000 is shaping up as a “key psychological level,” adding that “if we fail to hold it, a move toward” the $60,000 to $65,000 range “becomes quite likely.”