Bitcoin nears $67,000, hitting lowest level since October 2024

Market Overview - Bitcoin (BTC) has fallen to approximately $67,000, marking its lowest level since October 2024, and is down over 45% from its all-time high [1][4] - The decline has erased all gains made during President Trump's second term, despite initial optimism regarding crypto-friendly policies [1] Bear Market Dynamics - 10X Research notes that Bitcoin remains in a larger bear-market structure, with elevated downside risks due to a lack of strong catalysts and stretched positioning [2] - A significant overhang exists with Bitcoin ETF holders, who are underwater with an average acquisition price near $90,000 [2] Ethereum Market Conditions - Ethereum (ETH) ETFs are experiencing similar challenges, with investors down approximately 31% based on their average cost basis [3] - The difficulty in attracting new allocations from Wall Street investors is increasing, as many current holders regret not reducing their exposure at higher price levels [3] Regulatory Environment - The decline in Bitcoin's price was exacerbated by comments from Treasury Secretary Scott Bessent, who stated that the US government does not have the authority to bail out cryptocurrencies [4] - This statement came during a House Financial Services Committee hearing, contributing to the negative sentiment in the market [4] Broader Market Influences - The overall market selling pressure has intensified, influenced by a warning from investor Michael Burry about a potential "death spiral" for Bitcoin, which he views as a speculative asset rather than a hedge against debasement like gold [5] - Year-to-date, Bitcoin is down roughly 22%, with intensified selling following the nomination of Kevin Warsh as the next Fed chair, perceived as a hawkish move for cryptocurrencies [6]