Bitcoin (BTC-USD) dropped to $67,000 per token on Thursday, falling to its lowest level since 2024 as selling pressure intensified.
The token extended losses from the prior session after Treasury Secretary Scott Bessent signaled that the US government would not step in to support the cryptocurrency market.
In a heated back-and-forth during a House Financial Services Committee on Wednesday, Bessent was asked if the US Treasury had the authority to buy bitcoin or other cryptos.
“I do not have the authority to do that, and as chair of FSOC, I do not have that authority,” Bessent stated.
Bitcoin fell to as low as $67,073 apiece early Thursday, continuing Wednesday’s slump that followed Bessent’s comments.
The decline was also fueled by the broader selling pressure in markets and a warning from notable investor Michael Burry that a sustained decline in bitcoin’s price could “set in motion a death spiral leading to massive value destruction.”
“Bitcoin has been exposed as a purely speculative asset, and is not near the debasement trade hedge that gold and other precious metals are,” Burry, who rose to prominence after predicting the 2008 financial crisis, wrote in his Substack.
The move lower on Thursday only added to bitcoin’s recent rout. The world’s largest cryptocurrency is down nearly 20% year-to-date.
Bitcoin dropped sharply last weekend to notch its fourth straight month of losses.
The move lower coincided with President Trump’s announcement last Friday selecting Kevin Warsh to lead the Federal Reserve when Jerome Powell’s term ends in May, a nomination markets view as hawkish.
Ether (ETH-USD) and other digital tokens also slid.
Read more: How to navigate a crypto meltdown
After bitcoin earlier broke through the key support level at $73,000, 10X Research strategists wrote that “current flows suggest sentiment has shifted meaningfully.”
The firm’s strategists pointed to flow and positioning data, which indicated “investors are not yet positioned to buy the dip.”
“While sentiment and technical indicators are approaching extreme levels, the broader downtrend remains intact,” the researchers wrote. “In the absence of a clear catalyst, there is little urgency to step in.”
The firm noted that traders remain focused on deleveraging and unwinding their positions rather than on preparing for a typical snapback rally.
Pressure on digital assets reflected the broader fragility across the crypto market. Aside from a brief bounce last month, bitcoin has struggled since October, when whale selling and forced liquidations swept through the industry.
