Bitcoin (BTC) has recently continued its decline, falling more than 40% from the all-time high set last year and dropping approximately 20% cumulatively since the beginning of 2026. Recently, the cryptocurrency even hit a 52-week low, with its price once breaking below the $61,000 mark.
Heightened market risk aversion is considered a significant driver of this round of decline. As investors grow increasingly concerned about the economic outlook, gold and silver have become more favored safe-haven assets, with both reaching new highs repeatedly this year. In contrast, Bitcoin’s safe-haven attributes are being questioned—historical data shows that this asset typically performs better when investors are optimistic about the economy. For example, in 2022, when the S&P 500 fell 19% due to escalating inflation, Bitcoin’s price plummeted 65% in sync.
Looking back at the second half of 2025, Bitcoin had already begun to show signs of weakness. At that time, concerns over valuation bubbles and stock market risks prompted funds to flow into traditional precious metals rather than cryptocurrencies. Although in April last year, Bitcoin staged a strong rebound after falling to around $75,000 amid economic worries triggered by tariff frictions, the current macroeconomic uncertainty has led the market to take a cautious view on its short-term rebound potential.
In terms of volatility, Bitcoin’s recent performance highlights its high-risk nature. As the largest cryptocurrency by market capitalization, Bitcoin has delivered astonishing returns for long-term holders over the past decade—if $1,000 had been invested ten years ago and held until now, its value would have surged to approximately $167,000, representing a return of 16,590%. However, its short-term performance has been highly volatile. Over the past year, its price has fallen 33%, retreating more than 45% from the historical peak of $126,000 per coin.
Analysis points out that diminished expectations for the Federal Reserve to continue cutting interest rates this year, coupled with the strength in precious metals raising doubts about Bitcoin’s store-of-value function, have jointly contributed to this round of selling. Although optimistic views suggest that Bitcoin could potentially break through the million-dollar mark in the future, most analysts emphasize that this remains a high-risk assumption. For investors with lower risk tolerance, there are more growth-oriented investment options in the market with relatively controllable risks. Although Bitcoin is currently below the key threshold of $75,000, it may still decline further. Investors need to fully assess its characteristics of extreme price volatility before making decisions.
