Bitcoin’s price has dropped more than 50% from its all-time high of around $125,000, reached in October 2025.
As of June 5, 2026, data from CoinGecko showed that Bitcoin briefly fell to $61,400, down more than 50% from its all-time high reached 8 months earlier.
Bitcoin set its all-time high on October 6, 2025, amid strong inflows of institutional capital, robust demand for spot ETFs, and expectations of monetary policy easing in the United States. Against this backdrop, the asset’s price surpassed $125,000 for the first time, while the cryptocurrency’s market capitalization approached $2.5 trillion.
The current decline ranks among the steepest pullbacks following a record high. At a price of around $62,000, Bitcoin is trading more than $63,000 below its all-time high. The asset’s market capitalization stands at $1.25 trillion, having lost about 22% over the past month alone.
Analysts say the scale of the correction is comparable to some of the largest downturn phases seen after previous market cycles. They attribute Bitcoin’s decline to several factors, including:
- Capital outflows from spot Bitcoin ETFs. Following record institutional inflows in the first half of 2025, some investors began reducing their exposure, adding pressure to the market. Investors withdrew about $3.48 billion from spot Bitcoin ETFs in November 2025 and more than $1.09 billion in December. Capital outflows continued through the spring of 2026, creating persistent downward pressure on prices.
- Profit-taking after Bitcoin reached a new ATH. Bitcoin’s rally to a record level prompted long-term holders to lock in gains. According to Glassnode analysts, the volume of realized profits by long-term investors was among the largest in the market’s history, totaling approximately 2.37 million BTC, or about $260.7 billion.
- Liquidation of leveraged positions. Falling prices triggered the forced closure of a significant number of margin and futures positions. On some days, total liquidations exceeded $1 billion, accelerating the decline.
- Capital rotation into other market segments. Some investors shifted their focus to the rapidly expanding artificial intelligence sector and related technology companies. According to Michael Saylor, co-founder of Strategy, AI companies attracted about $400 billion over the past 6 months, while spot Bitcoin ETFs continued to experience substantial outflows.
- A lack of new growth catalysts. After the launch of spot ETFs and Bitcoin’s climb to record highs, the market failed to receive positive catalysts of comparable scale that could sustain further gains.
Despite the sharp decline, Bitcoin remains well above the levels at which it traded before the start of its strong rally in 2025. Still, a 50% drop in the asset’s value marks an important psychological threshold for market participants. The Crypto Fear & Greed Index has fallen into the “Extreme Fear” zone, a level that typically signals dominant bearish sentiment and heightened investor caution.
The market also continues to face pressure from expectations surrounding Federal Reserve interest rates, inflation risks, geopolitical tensions, and a broader decline in appetite for risk assets. In this environment, some investors have shifted toward more conservative hedging instruments. Demand for gold, for example, increased throughout 2025, and the precious metal reached a new ATH in January 2026. Against this backdrop, the growth of the tokenized commodities segment, with nearly 95% of its market value generated by gold-backed tokens, became one of the key drivers of expansion in the RWA market in 2026.
