Bitcoin Falls Below $62,000 to Seven-Month Low as Market Confidence, Institutional Demand Wane

ChainCatcher, citing Bloomberg, reported that Bitcoin fell toward $62,000 over the weekend to its lowest level since July. Unlike previous sharp crashes, the decline built gradually during relatively calm trading; it then accelerated after large-scale liquidations and continued to weigh on investor confidence, leaving traders exhausted and demoralized. On the macro front, the U.S. 10-year Treasury yield rose above 5%, the dollar strengthened and persistent inflation reinforced expectations of further Federal Reserve tightening. Market analysis suggests the near-term direction depends largely on whether institutional demand can stabilize and whether the macro environment allows risk appetite to recover. Until then, any rebound may remain fragile and volatility is likely to stay elevated. All financial markets are now in a risk-off environment as interest rates continue to rise. Bitcoin has erased most of the gains from its rebound below $65,000 to above $87,000. Market participants now worry it could fall below the low for the year of about $58,000.