Bitcoin falls below $64,000 as losses accelerate, hits lowest levels since October 2024

Core Insights - Bitcoin (BTC) experienced a significant crash, dropping over 13% to below $64,000, marking its lowest level since October 2024 and nearly 50% down from its all-time high [1] - The decline in Bitcoin's price is attributed to a combination of market sell-off pressures and negative sentiment from influential investors [5] Market Dynamics - Bitcoin is currently in a larger bear-market structure, with elevated downside risks due to a lack of strong catalysts and overexposed ETF holders with an average acquisition price near $90,000 [2] - Ethereum (ETH) is facing similar challenges, with investors down approximately 31% based on their average cost basis, and a 13% drop in price on the same day [3] Regulatory Environment - The sell-off was exacerbated by comments from Treasury Secretary Scott Bessent, who stated that the US government does not have the authority to bail out cryptocurrencies, contributing to market uncertainty [4] Investor Sentiment - Notable investor Michael Burry warned that a sustained decline in Bitcoin's price could lead to a "death spiral," highlighting its speculative nature compared to traditional safe-haven assets like gold [5] - Year-to-date, Bitcoin is down roughly 27%, with intensified selling pressure following the nomination of Kevin Warsh as the next Fed chair, perceived as a hawkish move for cryptocurrencies [6]