Bitcoin tumbled below $61,000 on sharp selling pressure, marking a 42% decline over the past 12 months and a roughly 50% drop from its all-time high of $126,000 recorded in September 2025 — just ten months ago.
Who’s getting hit
- Some of the largest holders, including MicroStrategy (MSTR) and major crypto exchanges, are now sitting on billions in unrealized losses after the latest slide. The move has renewed concern that BTC could break under $60,000 for the first time since September 2024.
Policy headwinds and market catalysts
- One key potential booster for crypto — the market-structure bill nicknamed the Clarity Act — is slipping down the legislative calendar as lawmakers remain divided. Many had expected passage this summer; that timeline is now stretched. While passage could reinvigorate investor interest, some traders worry that delays will blunt any near-term recovery in Bitcoin.
Technical picture and trader stakes
- Traders say Bitcoin is testing a critical support band around $60,000, the same zone that produced a strong rebound after February’s capitulation. That level is widely viewed as the last meaningful defense for the bulls; a decisive break could open the door to the $50,000 range and potentially a longer drawdown. Conversely, some investors see the current prices as a rare buying opportunity.
Sentiment and on-chain signals
- The sell-off comes amid continued outflows from Bitcoin ETFs — an 11th straight day of net outflows was recorded Monday — and on-chain data showing total crypto market capitalization slipping back below $2.5 trillion for the first time since April.
Longer-term perspective
- As Real Vision founder Raoul Pal put it: “When more people are scared off by short-term fluctuations, the real opportunity lies in long-term liquidity and network effects.” Historically, this is the fifth time Bitcoin has experienced a drawdown of this magnitude; it recovered from the previous four and went on to set new all-time highs. Still, with policy uncertainty, ETF flows, and technical levels all in play, the path forward remains highly contested.
What to watch next
- Key items to monitor: whether BTC holds the $60,000 support, progress (or further delay) on the Clarity Act, continued ETF flows, and broader on-chain liquidity metrics. Each will be critical in shaping Bitcoin’s next directional move.
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