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

Odaily News Bitcoin briefly fell below $60,000 last week, recording its worst single-week performance since the collapse of the FTX exchange in 2022. In the seven days through Sunday, Bitcoin fell a cumulative 16%, extending a decline of over 50% from its 2025 all-time high of more than $126,000.

Several market analysts are warning that the recent rebound may be unsustainable and that Bitcoin may not have yet reached the bottom of this cycle. Griffin Ardern, co-founder of Primal Fund, stated that the market is still "quite a distance" from a "true bottom."

Data shows that U.S. spot Bitcoin ETFs have recorded net outflows for 13 consecutive trading days, with total outflows reaching approximately $5.5 billion. Meanwhile, Bitcoin last week fell below the widely watched 200-week moving average, 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 the break 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 U.S.-Iran conflict, a reversal in expectations for Federal Reserve interest rate cuts, and strong U.S. employment data are driving the market to reprice the interest rate path. A high-interest-rate environment is unfavorable for the performance of risk assets, including crypto assets. Additionally, some capital is flowing out of the crypto market and into the AI and tech stock sectors.

Despite this, the current pullback is still shallower 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 large amounts of Bitcoin face financing pressures, there remains further downside risk for the market in the future. (Bloomberg)