Bitcoin Faces Harshest Week Since FTX Collapse, Indicating Potential Downturn Ahead
By Sidhartha Shukla & Suvashree Ghosh, Bloomberg
Published: June 10, 2026, 07:04 AM IST
Bitcoin has endured its most challenging week since the infamous collapse of the FTX exchange in 2022, sliding below the critical $60,000 mark last Friday. While this current decline lacks the dramatic intensity of past crypto meltdowns, market analysts warn that it may be a harbinger of deeper struggles ahead for the leading cryptocurrency.
Decline Overview and Investor Sentiment
The cryptocurrency suffered significant investor pullback, with exchange-traded funds (ETFs) linked to Bitcoin experiencing approximately $5.5 billion in net outflows over a continuous 13-day period. This sustained withdrawal signals waning investor confidence and a shift in capital away from digital assets perceived as speculative.
The week’s selloff was compounded by Strategy Inc., the Bitcoin-buying firm led by Michael Saylor, selling a small portion of its holdings. This move momentarily contradicted its earlier image as a steadfast holder, shaking market nerves. Although Strategy swiftly attempted to restore confidence by repurchasing 1,550 Bitcoins—valued at around $101 million—investors remain cautious.
Technical Indicators Signal Weakness
Technically, Bitcoin breached its 200-week moving average—a widely observed benchmark indicating long-term support—an event regarded by traders as a warning of possible intensified selling pressure. Historically, dips below this threshold have often signified deeper market corrections.
Market strategist Ardern noted the absence of bullish signals typically observed at market bottoms, such as positive shifts in longer-dated option contracts, further suggesting the current downturn is yet to find stability.
Broader Economic Factors Contributing to Downturn
The cryptocurrency’s slide is also influenced by broader macroeconomic factors. Notably, shifts in US interest-rate expectations have turned unfavorable for risk assets. Strong US employment data and escalating geopolitical tensions, including the unresolved US-Iran conflict, have led markets to anticipate potential rate hikes rather than reductions by the Federal Reserve. Higher interest rates typically reduce the appeal of volatile, high-risk investments like cryptocurrencies.
Rajiv Sawhney, head of international portfolio management at Wave Digital Assets, highlighted that Bitcoin’s previously positive correlation with US equities has deteriorated, with investment flows now favoring artificial intelligence and technology stocks instead.
A “Silent Bear Market” Emerging
Paul Howard, senior director at crypto trading firm Wincent, described the present phase as a “silent bear market” due to the lack of dramatic collapse events akin to FTX but accompanied by fundamental market weakness. Elevated volatility and technical breakdowns diminish prospects for a sustainable price rally.
Despite the corrections, this downturn remains milder compared to historical crypto winters. Bitcoin’s current correction reflects roughly a 50% decline from its all-time highs, in contrast to nearly 80% drawdowns in previous cycles. Historically, following its 2021 peak, Bitcoin took over a year to bottom and more than 15 months to regain prior highs.
Risks from Concentrated Crypto Holders
Industry observers also warn of risks stemming from large institutional holders of cryptocurrencies. Hayden Hughes, managing partner at Tokenize Capital, pointed out that companies like Strategy Inc. add unique risks, as forced selling by such entities could exacerbate market stress amid tightening financial conditions.
Moreover, emerging systemic risks affecting equity markets could extend bearish pressure to cryptocurrencies in the forthcoming months.
Outlook
While outright collapse is not imminent, the prevailing signs indicate that the current modest rebound may be short-lived. Analysts urge caution, noting that the relatively mild nature of today’s crypto winter could belie the depth of challenges yet to unfold.
Investors are advised to monitor evolving technical indicators and macroeconomic developments closely, as continued capital flight from speculative digital assets may signal further declines ahead.
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