Bitcoin's "Silent Bear Market" Continues, Worst Weekly Performance Since FTX Collapse

According to Odaily, Bitcoin briefly fell below $60,000 last week, marking its worst single-week performance since the collapse of the FTX exchange in 2022. In the seven days through Sunday, Bitcoin dropped 16% cumulatively, retreating over 50% from its all-time high of more than $126,000 set in 2025.

Multiple market analysts have warned that the current rebound may not be sustainable and that Bitcoin may not have reached the bottom of this cycle yet. Griffin Ardern, co-founder of Primal Fund, stated that the market is still a considerable distance from a "true bottom."

Data shows that US spot Bitcoin ETFs have recorded net outflows for 13 consecutive trading days, with cumulative outflows totaling approximately $5.5 billion. Meanwhile, Bitcoin fell below the widely watched 200-week moving average last week, a key support level, further weakening market confidence. Paul Howard, Senior Director at crypto trading firm Wincent, described the current market conditions as a "silent bear market," arguing that breaking below the 200-week moving average is a significant confirmation signal that the market has entered a bear phase.

Analysts point out that the ongoing conflict between the US and Iran, a reversal in expectations for Federal Reserve rate cuts, and strong US employment data are driving the market to reprice the interest rate path. A high-interest-rate environment is unfavorable for risk assets, including crypto assets. Additionally, some capital is flowing from the crypto market to AI and tech stock sectors.

Despite this, the magnitude of the current correction is still smaller than historical bear market cycles. In previous bear markets, Bitcoin typically retraced about 80% from its highs, whereas the current decline is around 50%. Some traders believe that if the macroeconomic environment continues to deteriorate and companies holding substantial Bitcoin face funding pressures, there remains further downside risk for the market in the future. (Bloomberg)