Bitcoin falls below $65,000 as institutional selling and tech weakness collide

Bitcoin has continued its sharp decline, slipping below the $67,000 level. Once hailed as “digital gold” and a hedge against inflation, the cryptocurrency is again facing questions from investors about its real-world utility. With institutional investors turning into net sellers and technology stocks weakening, pessimism is spreading across the broader cryptocurrency market.
On the 5th (local time), Bitcoin briefly fell below $65,000 during intraday trading, marking its lowest level since November 2024. Once the $70,000 mark was breached early in the session, selling pressure intensified rapidly, and Bitcoin has plunged about 20% just this week.
Bitcoin has been on a downward trajectory since peaking at above $126,000 in early October last year and is now trading more than 45% below that high. The market had regarded $70,000 as a key psychological support level. With that level broken, concerns are mounting over the potential for further declines. Some analysts say a correction into the $60,000–$65,000 range cannot be ruled out.
Digital assets including Bitcoin have been touted as a hedge against inflation and macroeconomic uncertainty, and as a new safe haven that could replace fiat currencies and gold. Recent market behavior, however, has diverged sharply from those expectations.
Even as geopolitical and macroeconomic uncertainty has intensified in places such as Venezuela, the Middle East, and Europe, Bitcoin has moved largely in tandem with risk assets like equities. Its use as a means of payment for goods and services also remains limited.
Over the past year, Bitcoin has fallen by around 30%, while the price of gold has surged 68% over the same period. Despite its nickname as “digital gold,” its actual performance has increasingly lagged behind that of traditional safe-haven assets.
Other cryptocurrencies are facing similar pressure. Ethereum has dropped 23% just this week, putting it on track for its worst weekly performance since November 2022. Solana has slid to the $88 range, hitting its lowest level in about two years.
The behavior of institutional investors, long seen as a key pillar supporting Bitcoin’s price, is also shifting. Market research firm CryptoQuant assessed that “institutional demand has effectively reversed.”
U.S. Bitcoin ETFs recorded large net inflows during the same period last year, but have turned to a net selling trend so far this year.



pride@fnnews.com Reporter Lee Byung-chul Reporter