Bitcoin price plummets amid market volatility and economic uncertainty

Bitcoin Price Tumbles to Lowest Level in Over a Year

The price of Bitcoin, the world’s most popular cryptocurrency, fell below $66,000 on Thursday afternoon and hovered around $62,900 on Friday morning. This marks a significant decline from its all-time peak of over $127,000 reached in October last year.

According to analysts, volatility in other markets is a major contributor to the recent price drop. Geopolitical uncertainty and recent fluctuations in gold and silver prices have led investors to sell these assets, resulting in a decrease in demand for Bitcoin. US exchange-traded funds (ETFs) that had been buying up Bitcoin last year are now selling it this year, according to CryptoQuant.

Deutsche Bank analysts noted that these ETFs have seen billions of dollars flow out each month since the October 2025 downturn, with specialized US spot Bitcoin ETFs suffering outflows of over $3bn in January. This steady selling is attributed to traditional investors losing interest and growing pessimism about crypto.

Adam Morgan McCarthy, product specialist at Kaiko, explained that the fall in Bitcoin prices has been largely tied to less interest in the markets and lower trading volumes. He stated that the crypto market relies heavily on “hype-driven” cycles where people buy due to a fear of missing out on an opportunity.

The recent price drop is also linked to volatility in gold and silver prices, which have plunged this week following a brief peak last week. Geopolitical instability and the prospects of a rising US dollar have led investors to sell precious metals, affecting the price of cryptocurrencies.

Other cryptocurrencies like Ether have also fallen, with its price dropping by 19 percent this week. The price of Bitcoin is currently down by about 30 percent since the start of the year.

Source: Al Jazeera