Bitcoin’s value has declined sharply, falling to $62,576 on Thursday—its lowest level since September 2024—and erasing nearly half of its value from an all-time high above $120,000 last October. The drop, which saw the cryptocurrency lose up to 14% in a single day, has intensified concerns about a prolonged downturn in digital asset markets.
The decline marks a significant reversal from the optimism that followed the inauguration of US President Donald Trump in January 2025. At that time, Bitcoin and other cryptocurrencies had risen on expectations of supportive US policies, including plans to establish the nation as a global “crypto capital.” Since then, Bitcoin has lost approximately 40% of its value, undermining earlier gains tied to the new administration’s promised regulatory framework.
Analysts point to rising geopolitical tensions as a primary catalyst for the latest sell-off. Increased global uncertainty has prompted investors to retreat from riskier assets, with cryptocurrencies bearing the brunt of the shift. “As Bitcoin continues its slide below the psychological barrier of $70,000, it’s clear the crypto market is now in full capitulation mode,” said Nic Puckrin, founder of Coin Bureau, in comments reported by Investing.com. He suggested the current phase may represent a broader market transition rather than a brief correction, noting that such cycles historically unfold over months, not weeks.
The downturn has been widespread across the crypto sector. Major alternative tokens, including Ethereum, BNB, and Solana, each fell more than 13% during the session. The total market capitalization of all cryptocurrencies dropped by about 12% to $2.18 trillion, according to data from CoinMarketCap. This contraction reflects deepening pessimism among traders and institutional alike.
The shift in sentiment occurs despite occasional positive signals, such as Trump Media’s announced $2 billion investment in Bitcoin. That development has done little to counter the broader macro-driven pressure on prices. Market observers note that digital assets remain highly sensitive to changes in global liquidity, regulatory rhetoric, and macroeconomic indicators like inflation and interest rate expectations.
For now, the focus is on whether support levels will hold or if further declines are imminent. The breach of key thresholds like $70,000 and now $65,000 may trigger additional automated selling and stop-loss orders. The ability of the market to stabilise will depend heavily on calming geopolitical developments and any concrete policy steps from US regulators that could restore confidence in the long-term viability of cryptocurrencies as an asset class.
