Outcry in crypto market: Bitcoin price halved in 8 months, investors ran towards AI and gold

New Delhi: There is big news from the global digital asset market. The ongoing decline in the world’s most popular and valuable cryptocurrency ‘Bitcoin’ has deepened. This is the first time since October 2024 that the price of Bitcoin has fallen below the psychological level of $60,000. After touching its record peak of over $1.26 lakh in October last year, the virtual currency has lost half of its value in just 8 months.

Huge fall of 7% in a single day

Bitcoin saw a sharp fall of about 7 percent in the Saturday morning trading session, due to which its price fell to the level of $ 59,101 per coin. However, later with a slight recovery it was seen trending around $59,743.21. According to market experts, there is all-round pressure on Bitcoin due to changes in liquidity patterns and the continuous withdrawal of big institutional investors from the crypto market.

Investors turned towards AI and gold

Experts analyze that investors are now moving their capital out of the risky crypto market and into strong and real growth sectors like Artificial Intelligence (AI), Defence, Energy and Infrastructure. Additionally, the growing attraction towards gold and stocks of AI-powered tech companies has also hurt the demand for cryptocurrencies. At the same time, the mixed signals coming from the US Federal Reserve regarding reduction in interest rates have also worked to change the attitude of investors.

The momentum that came from Trump’s victory is now missing

It is noteworthy that after the historic victory of Donald Trump in the US Presidential elections, Bitcoin had gained rocket speed and set new records in the hope of crypto-backed policies. But now due to global economic uncertainties and changing investment priorities, that momentum has completely disappeared.

Now the further direction will depend on whether Bitcoin is able to recapture its important support level of $60,000 to $62,000 or not. In the coming days, fund flow in ETFs, institutional participation and geopolitical conditions will decide the next move of the crypto market.