economy
February 6, 2026
Bitcoin gets slashed in half. What's behind the crypto's existential crisis
Bitcoin nearly grazed $60,000 on Thursday as investors shied away from the asset due to growing concerns over its utility.
TL;DR
- Bitcoin fell to $60,062, its lowest since October 11, 2024, and over 52% down from its record high.
- Other digital assets like ether and solana also saw significant weekly declines.
- Investors are reassessing Bitcoin's utility as a digital currency and store of value.
- Institutional appetite is waning, with spot Bitcoin ETFs experiencing substantial outflows.
- The current downturn is seen as macro-driven deleveraging, not a systemic failure within crypto.
- Bitcoin's performance as a safe haven is questioned, as it trades down with risk-on assets during uncertain times, unlike gold.
- Concerns also exist regarding institutional adoption and the potential for the network to be hacked.
- Efforts to market Bitcoin as an alternative to fiat currencies have largely faded, with stablecoins gaining traction for payments.
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