Bitcoin is heading for its worst weekly performance since FTX’s collapse in 2022, as investors continue to pull back from risk assets amid rising volatility across global financial markets.
The world’s largest cryptocurrency fell 1.89% to US$62,603, putting it on course for a weekly decline of around 15% — its steepest drop since November 2022, when the failure of Sam Bankman-Fried’s FTX exchange triggered a crisis of confidence throughout the digital asset sector.
The FTX collapse became one of the biggest financial scandals in recent history, wiping billions of dollars from the cryptocurrency market and ultimately leading to Bankman-Fried’s conviction and imprisonment on fraud charges.
The latest sell-off reflects a broader shift away from speculative assets as investors grapple with geopolitical uncertainty, fluctuating interest-rate expectations, and concerns over global economic growth.
Cryptocurrencies have been particularly vulnerable to changing risk sentiment, with traders reducing exposure to more volatile asset classes in favour of defensive investments.
Bitcoin’s decline has also weighed heavily on the wider digital asset market. Ethereum, the second-largest cryptocurrency by market capitalisation, fell 5.99% to US$1,663, extending recent losses across the sector.
Despite continued institutional adoption and growing mainstream acceptance of digital assets, the current correction highlights the market’s sensitivity to broader macroeconomic conditions and investor confidence.
While the decline is significant, analysts note that the cryptocurrency market remains substantially larger and more mature than it was during the FTX crisis, with stronger institutional participation and improved regulatory oversight in several key markets.
Investors will now be watching closely for signs of stabilisation, particularly as global markets assess the outlook for economic growth, monetary policy and risk appetite heading into the second half of the year.
