Bitcoin tanks below $63,000 for the first time since February as price selloff deepens

The selloff has triggered demand for protective options plays, pushing the fear gauge higher.

What to know:

• Bitcoin fell to about $63,000, its lowest level since February, and is down more than 14% this week and 21% over the past four weeks.
• The sell-off has driven 30-day implied volatility to its highest level since early April and prompted 13 straight days of outflows from U.S.-listed spot bitcoin ETFs, signaling waning institutional demand.
• Analysts say a lack of fresh catalysts, rotation of liquidity into sectors like artificial intelligence and concerns over Mt. Gox-related selling could fuel further volatility, with key support watched around $60,000 and some eyeing $50,000 as a potential bottom.

Bitcoin BTC$66,924.57 extended losses early Thursday, falling to $63,000 for the first time since February 24. The cryptocurrency has lost over 14% this week alone and 21% over the past four weeks, according to CoinDesk data.

The selloff has triggered demand for protective options plays, pushing the fear gauge, the 30-day implied volatility index BVIV, to 53.17, its highest level since April 2.

Investors yanked another $50 million from U.S.-listed spot ETFs Wednesday, marking the 13th consecutive trading day of outflows from these vehicles, which are viewed as a proxy for institutional demand.

"A broad sell-off in crypto, which started with Strategy's transfer triggering ETF outflows and is now fueled by speculative news about Mt. Gox liquidations, signals a potential continued sell-off. BTC at $50k is a level some are starting to talk about as a bottom this year," Paul Howard, senior director at liquidity provider Wincent, said in an email.

"Whilst there is a long way to go, the absence of catalysts and the movement of liquidity into other tech sectors such as AI indicate we have further volatility ahead," he added.

Some traders are closely watching levels around $60,000 as potential support. The February crash saw prices nearly test that level on some exchanges before the sell-off ran out of steam

"The first major zone I’m watching is the low $60k region, because that is where a lot of important pieces start coming together. We have the local low around $59.9k. We have the 200-week moving average now sitting in that same general area," analysts at data tracking platform Material Indicators said in an email.

"That does not guarantee support. It simply tells us this is where the market should have to make a decision," they added.

More For You

SpaceX's proposed $75 billion IPO would rank among the largest ever, while its $1.29 billion bitcoin holding and the broader wave of megacap listings could reshape capital flows across crypto and technology markets.

What to know:

• SpaceX plans to price its initial public offering at $135 a share, which would raise about $75 billion and value the company at roughly $1.75 trillion.
• The listing would bring SpaceX’s 18,712-bitcoin treasury, worth about $1.29 billion as of March 31, into public markets and give shareholders indirect exposure to...

SpaceX targets record $75 billion IPO as bitcoin treasury and liquidity risks draw focus

3 hours ago

Tom Lee's Bitmine borrows a page from Saylor's playbook to offer 9.5% yield in preferred stocks

3 hours ago

Bitmine's Ethereum bet nears $9 billion loss as ether falls below $1,800

5 hours ago

New DeFi entrant widens field of crypto political campaign funds as elections loom

7 hours ago

Bitcoin isn't crashing because of Saylor, it's losing the momentum trade

7 hours ago

Crypto Long & Short: What about the American consumer?

9 hours ago

Rare physical bitcoin worth $1.78 million gets cashed in after 12 years

11 hours ago

Payment giants Stripe, Visa, Mastercard said to be among backers of soon-to-debut stablecoin platform

14 hours ago

Live markets: bitcoin hits weakest level since late March as selling continues

13 hours ago

Clarity Act survival depends on the U.S. Senate getting a lot of non-crypto work done

13 hours ago

Bitcoin's dearth of fresh investors matters more than Strategy's sale, Citi says

12 hours ago

In this article

BTCBTC$66,924.57◢3.97%