14% weekly decline and 21% four-week drop signal deepening selloff
Bitcoin fell to approximately $63,000, marking its lowest level since February 24, as a broad cryptocurrency selloff deepened Wednesday and Thursday. The decline represents a 14% drop over the past week and a 21% decline over four weeks, according to CoinDesk.
The selloff has triggered a surge in demand for protective options positions. The 30-day implied volatility index (BVIV) climbed to 53.17, matching levels not seen since April 2. Investors also withdrew $50 million from U.S.-listed spot bitcoin ETFs on Wednesday, marking the 13th consecutive trading day of outflows, a metric analysts view as a proxy for institutional demand.
Paul Howard, senior director at Wincent, attributed the decline to multiple pressures. “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,” Howard said. “BTC at $50k is a level some are starting to talk about as a bottom this year.”
Analysts cite three primary drivers of continued volatility: the absence of fresh catalysts, rotation of liquidity into artificial intelligence sectors, and concerns over Mt. Gox-related selling. Howard noted that “the absence of catalysts and the movement of liquidity into other tech sectors such as AI indicate we have further volatility ahead.”
Traders are monitoring the low $60,000 region as a critical technical zone. Material Indicators analysts identified this area as significant because “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.” However, they cautioned that proximity to these levels does not guarantee support. “That does not guarantee support. It simply tells us this is where the market should have to make a decision,” the analysts said.
The February crash saw prices nearly test the $60,000 level on some exchanges before the selloff reversed. Some analysts are now discussing $50,000 as a potential bottom, though this remains speculative.
The persistent outflows from spot bitcoin ETFs stand in contrast to the institutional demand that fueled rallies earlier in 2026. The 13-day streak of consecutive outflows underscores shifting sentiment among large investors tracking these products.
