Bitcoin fell below $66,000 on Thursday to its lowest level in more than a year. The digital asset is down nearly 50% from its October peak. Analysts had been watching $70,000 as a key psychological threshold below which prices were likely to break further. Barry Bannister, chief equity strategist at Stifel, wrote in a research note Wednesday that bitcoin could ultimately bottom out around $38,000 — down about 70%.
Big Short investor Michael Burry warns of death spiral ahead for bitcoin, saying he reached that conclusion based on trends and price moves during past bitcoin super-bears, or periods of steep downturns. “This is not a ‘bull market correction’ or ‘a dip,’” Matt Hougan, chief investment officer at Bitwise Asset Management, a crypto money manager, wrote in a note Monday. “It is a full-bore, 2022-like, Leonardo-DiCaprio-in-The-Revenant-style crypto winter — set into motion by factors ranging from excess leverage to widespread profit-taking by OGs,” Hougan wrote. The crypto sell-off comes amid broad support for cryptocurrency by President Donald Trump and his administration.
Bitcoin ETFs began trading on U.S. stock exchanges about two years ago, making it easier for investors to buy and sell crypto. Why have crypto prices dropped in recent weeks and months? Because “good news doesn’t matter,” according to Hougan. The current winter started in January 2025, he said, and it wasn’t readily evident at the time due to enthusiasm among institutional investors for digital assets — which papered over a brutal winter among retail investors. Crypto winters typically last about 13 months — meaning the current one may end soon, according to Hougan.
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