Bitcoin Slides Below $63,000 for First Time Since February

What to know:

• Bitcoin fell to about $63,000, its lowest level since February, and is down more than 14% this week and 21% over the past four weeks.
• The sell-off has pushed 30-day implied volatility to its highest level since early April and triggered 13 straight days of outflows from U.S.-listed spot bitcoin ETFs, a not-so-subtle hint that institutional demand is cooling.
• Analysts blame a lack of fresh catalysts, liquidity rotating into AI, and lingering Mt. Gox overhang, with key support around $60,000 and some desks quietly penciling in $50,000 as a possible bottom.

Bitcoin BTC $63,729.63 extended losses early Thursday, sliding to $63,000 for the first time since February 24. The cryptocurrency has shed more than 14% this week and 21% over the past four weeks, according to CoinDesk data. The selloff has driven demand for protective options plays, lifting the fear gauge, the 30-day implied volatility index BVIV, to 53.17, its highest reading since April 2. Investors pulled another $50 million from U.S.-listed spot ETFs on Wednesday, marking the 13th consecutive trading day of outflows from these vehicles, which the market treats as a proxy for institutional appetite.

"A broad sell-off in crypto, which started with Strategy's transfer triggering ETF outflows and is now fueled by speculative news about Mt. Gox liquidations, signals a potential continued sell-off. BTC at $50k is a level some are starting to talk about as a bottom this year," Paul Howard, senior director at liquidity provider Wincent, said in an email. "Whilst there is a long way to go, the absence of catalysts and the movement of liquidity into other tech sectors such as AI indicate we have further volatility ahead," he added.

Some traders are watching the $60,000 area as potential support. The February crash saw prices nearly test that level on some exchanges before sellers ran out of steam. "The first major zone I'm watching is the low $60k region, because that is where a lot of important pieces start coming together. We have the local low around $59.9k. We have the 200-week moving average now sitting in that same general area," analysts at data tracking platform Material Indicators said in an email. "That does not guarantee support. It simply tells us this is where the market should have to make a decision," they added.

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