Bitcoin has hit its lowest price in the past year. Currently, BTC is trading at around $75,000. Bitcoin started the year at over $90,000 so in the world of assets, its performance has been pretty poor.
So why the dump? Is Bitcoin cooked? Done? Has everyone moved over to RWAs like Gold and Silver?
Coinshares reports that digital asset products saw $1.7 billion of weekly outflows, with year to date flows delivering a net outflow of $1 billion and driving a $73 billion fall in AuM since October 2025 highs. Outflows were heavily concentrated in the US at $1.65 billion. Short Bitcoin and Hype products were said to be notable exceptions.
Bitcoin specifically experienced $1.32 billion in outflows, Ethereum saw $308 million in exits, while recent favourites
XRP and Solana also saw outflows of $43.7 million and $31.7 million respectively.
JP Morgan claims that retail investors are dumping Bitcoin and moving into Gold.
Ryan Kirkley, Co-founder & CEO of Global Settlement, says the decline in Bitcoin is related to a broad macro stress rather than a breakdown specific to crypto markets. He mentions that other asset classes are performing poorly too, meanwhile dithering in Washington over crypto market infrastructure legislation is not helping markets as banks battle digital asset innovators.
Sergei Gorev, Head of Risk at YouHodler, says that sustained closes below the monthly Bollinger basis have often preceded capitulation-style moves in the months that follow for BTC. He notes that GameStop moved all of its BTC to an exchange this past week. Purchased for around $504 million and now valued at $421 million, a possible liquiditation has crypto markets on edge.
“Across markets, the common theme this week is not direction, but compression. Currency volatility is rising even as the dollar softens, metals are holding extreme levels without breaking, and Bitcoin remains locked in one of the tightest volatility regimes in its history. These conditions tend to frustrate short-term participants, but they also signal that markets are working off time rather than trend.,” says Gorev.
Diego Martin, CEO of Yellow Capital, notes that while Gold has hit an all-time high, Bitcoin is down over 40% from its peak.
“It has certainly been a tricky few months for the digital asset market. Prices are down, with some analysts predicting BTC could decrease to as low as $50,000. This is caused by a number of factors. US Spot BTC ETFs have seen strong outflows, capital is increasingly moving into AI-linked equities and precious metals, and thinning liquidity has caused disproportionately large price drops. But it is important to distinguish market volatility with the underlying utility of digital assets. The fundamentals haven’t changed. Short-term price moves are often driven by liquidity and timing, not by a shift in underlying value.”
Nic Puckrin, investment analyst and co-founder of Coin Bureau, believes the new Fed Chairman pick is to blame. Puckrin thinks the nomination of Kevin Warsh has “shaken markets to the core.”
“Markets are digesting Warsh’s views on future Fed policy – most notably the central bank’s balance sheet, which he says is “trillions larger than it needs to be”. If he does indeed adopt policies to shrink the balance sheet, markets will have to reckon with a lower-liquidity environment – a backdrop that isn’t supportive of either risk assets or precious metals.”
As Bitcoin proxy firm Strategy (Microstrategy) (NASDAQ:MSTR) now holds Bitcoin below its cost basis, markets are nervous.
“The danger for Strategy isn’t as acute as it may seem, though. It isn’t facing forced liquidations or imminent deadlines, with the first tranche of the convertible bonds only due early next year. If the Bitcoin rout continues, they could refinance or roll the debt over, or they could even take out a term loan or revolving credit line on a portion of their Bitcoin. Other digital asset treasuries (DATs), however, may have fewer options available to them, and we may begin to see some capitulation or potentially distressed acquisitions by better-capitalized competitors,” says Puckrin.
So what could turn the bear into a bull?
If crypto market infrastructure legislation delivered a positive resolution for digital asset firms this could stop the rout. Or maybe investors have simply moved on from Bitcoin as their favorite digital asset as RWAs take over.
Meanwhile, it is risk off in one of the riskiest and most volitile markets as investors pare holders to reduce exposure and wait for better opportunities.