Bitcoin prices suffered a major blow as the cryptocurrency tumbled 44% from its October peak.
The huge drop pushed Bitcoin price below $70,000 for the first time since November 2024.
Once seen as "digital gold," the world's largest cryptocurrency is now facing doubts in its reliability and usefulness among investors.
Its price has mostly moved in the same way as other risky investments like stocks, especially during recent global events in places like Venezuela, Middle East and Europe.
“This steady selling in our view signals that traditional investors are losing interest, and overall pessimism about crypto is growing,” Deutsche Bank analyst Marion Laboure said Wednesday in a note to clients, as per CNBC News.
Bitcoin is down nearly 29% over the past year, while gold has surged 69% in the same period.
Because of these concerns, investors have turned to gold which is now considered the safest investments as it is physically tangible and retains the value even when other investments are unstable.
Reports suggested that some investors are selling gold and silver to cover losses in bitcoin which is causing unusual swings in prices of these precious metals.
When investors are avoiding risk, bitcoin hasn't attracted buyers like safe investment, instead, traders are using the fear in the market as a reason to sell their bitcoin.
