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Bitcoin fell below $73,000 on Tuesday, reaching its lowest price in almost 16 months.
The world’s oldest cryptocurrency sank as low as $72,884.38, down more than 6% on the day. This is the lowest level since November 6, 2024, when the token traded at $68,898.
Strategy, a Bitcoin finance company, fell more than 4%.
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Bitcoin performance last year.
Bitcoin has fallen 16% year to date as investors continue to retreat from risky assets amid growing geopolitical concerns. Those losses widened this week as the release of key U.S. economic data was delayed due to a partial government shutdown.
Rob Hadick, general partner at Dragonfly Capital, told CNBC that investor jitters are compounded by ongoing uncertainty over lawmakers’ efforts to provide regulatory guardrails for the cryptocurrency industry, as well as a liquidation overhang in the digital asset market.
“BTC’s decline does not appear to be due to a single factor,” Hadick said. “Crypto and Bitcoin prices have always been volatile and this market is no different.”
He noted that fundamentals for the crypto market remain strong, especially as stablecoins and tokenized assets continue to gain traction among retail and institutional investors.
“We expect the medium and long-term outlook to remain constructive as markets continue to restructure,” Hadick added.