Bitcoin Price Drops 50% as Institutions Pull Out

Bitcoin's price has been declining since its peak in October 2025, dropping by around 50% to reach $63,000. This decline can be attributed to various factors including weaker institutional inflows, geopolitical uncertainty, and a resurgence in risk-off conditions.

The selling continued as geopolitical tensions, weaker technology stocks, and uncertainty over Federal Reserve policy ignited a broad risk-off move across markets. Over $500 million in leveraged positions in crypto were wiped out in the sell-off, adding to the downward pressure.

Analysts believe that for a turnaround to be more sustained, further ETF inflows and better liquidity are needed, as well as signs that broad investor interest is returning. Bitcoin surged past $66,000 in July as institutional demand appeared to be returning, yet flows were poor in H1 2026.