[Bitcoin Now] Bitcoin Hits Lowest Level in 20 Months

The price of Bitcoin has fallen below $60,000, dropping to its lowest level in about 20 months. The absence of clear positive factors to boost the virtual asset market, combined with strong performance in the stock market centered around artificial intelligence (AI)-related stocks and high-profile initial public offerings (IPOs) this year, has led to a decline in investment demand.

According to CoinMarketCap, a virtual asset market data site, as of 11 a.m. on June 25, the price of Bitcoin was $60,806.89, down 3.28% from 24 hours earlier. Major altcoins (virtual assets other than Bitcoin) such as Ethereum and BNB have also fallen by more than 2–3%.

On this day, Bitcoin broke through the $60,000 mark, dropping as low as $59,029.85. This is the lowest price since October 2024. Bitcoin plunged immediately after the Iran war broke out due to heightened geopolitical risks. Although the price attempted to rebound whenever expectations for easing of the conflict arose, it failed to find clear upward momentum and has shown weakness again since June.

Regarding this decline, the Financial Times (FT) and Bloomberg highlighted that the reduction in demand for virtual assets from individual investors has been a major factor. In the past, when Bitcoin prices plummeted, individual investors would step in to buy, and exchange-traded fund (ETF) investors also played a role in supporting the price. However, many investors who entered the market at high price levels are now facing unrealized losses, making it less likely they will accept further losses or increase their investment allocation.

Noelle Acheson, author of the virtual asset newsletter 'Crypto is Macro Now,' explained, "Currently, the Bitcoin market seems to be characterized by the absence of buyers, with only sellers remaining."

In particular, the fact that volatility has increased in the stock market, with capital flowing into AI-related stocks instead of virtual assets, has also been cited as a reason for the weak prices. It is reported that the subscription demand for SpaceX, which was listed this month, reached $250 billion. In addition, major AI companies such as OpenAI and Anthropic are also pursuing IPOs. Gary O'Shea of virtual asset management firm Hashdex said, "With IPOs and AI-related stocks capturing the market's attention, investment sentiment for virtual assets remains weak."

Experts predict that a rebound in virtual assets will be difficult in the absence of positive catalysts in the market. FT pointed out that while the passage of the "CLARITY Act," a bill that would establish a regulatory framework for virtual assets, could serve as a turning point, it currently faces fierce opposition from the banking sector and lacks bipartisan support.

This content was produced with the assistance of AI translation services.