NEW YORK — Bitcoin fell below the $67,000 level this week, extending a sharp selloff driven by forced liquidations, heavy outflows from exchange-traded funds and broader weakness across global markets, while also triggering a partisan clash online that underscored the cryptocurrency’s growing role in U.S. politics.
The world’s largest digital asset dropped more than 20% in a week, sliding from a late-January high near $89,000 to around $66,500 by Friday. Market participants said the decline reflected technical pressures rather than policy changes, as leveraged positions were unwound and investors pulled funds from spot Bitcoin ETFs amid wider risk aversion.
Market forces behind the decline
Analysts pointed to a combination of forced selling, ETF redemptions and macroeconomic uncertainty as the primary drivers of the downturn. As Bitcoin breached key technical support levels, automated liquidations accelerated losses, amplifying volatility across the broader cryptocurrency market.
Several analysts described the move as a “capitulation phase,” in which investors sell aggressively to limit losses after prolonged declines. The selloff also coincided with weakness in equities and other speculative assets, as investors shifted toward safer holdings.
Online political backlash
The price slide quickly spilled into U.S. political discourse. Democratic social media accounts circulated a mocked-up chart of Bitcoin’s decline featuring Donald Trump in a MAGA outfit with the caption “Yikes,” drawing criticism from prominent figures in the crypto industry.
Crypto entrepreneur Tyler Winklevoss and other industry leaders accused political opponents of ridiculing investors and framing market losses as a partisan issue. Some warned that mocking retail holders could alienate voters as digital assets become more widely owned.
Real-world impact on firms and investors
The downturn has had tangible effects beyond price charts. Several crypto-related companies have announced layoffs and cost-cutting measures in recent weeks, while large corporate Bitcoin holders have reported substantial unrealized losses as prices retreated from recent highs.
Retail investors who entered the market during the rally earlier this year have taken to online forums to express frustration and concern, highlighting the emotional toll of sharp swings in the volatile asset class.
Politics versus market mechanics
Despite the online backlash, analysts cautioned against linking Bitcoin’s movements too closely to political developments. They said liquidity conditions, interest-rate expectations and technical trading factors remain the dominant forces shaping price action.
As the 2026 U.S. midterm elections approach, however, observers note that cryptocurrencies are increasingly intersecting with politics, both as a campaign talking point and as a symbol of broader debates over regulation, innovation and financial risk.
For now, market watchers say Bitcoin’s near-term direction will depend on whether prices can stabilize above key support levels and whether ETF outflows ease. Until then, volatility is likely to remain elevated, keeping both investors and policymakers closely focused on the sector.
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