Bitcoin's Slide to $64,000 Is a 'Macro Shock,' Not a Market Breakdown
Bitcoin’s decline to around $64,000 is attributed to multiple macroeconomic shocks impacting a highly leveraged market, rather than a fundamental breakdown in its price cycle. The cryptocurrency dropped about 6.4% over the week and is now roughly 50% below its all-time high, coinciding with five weeks of digital asset outflows. Analysts cite factors such as new global tariffs, persistent inflation, the Federal Reserve’s reluctance to cut rates, and negative ETF flows as key pressures. Despite being considered “digital gold,” Bitcoin continues to act as a risk asset, seeing outflows when macroeconomic uncertainty rises. Ongoing pessimism around rate cuts and fears of a U.S. government shutdown also weigh on sentiment, potentially forcing miners to sell as operating margins tighten. While short-term corrections are expected and the traditional four-year cycle is under debate, analysts stress that Bitcoin’s underlying cycle and structural foundation remain intact. Stabilization in the mid-$60,000 range is anticipated, with a possible drop toward the realized price near $55,000 if macro weakness persists, but the longer-term scarcity-driven recovery narrative endures.
