Bitcoin’s uneasy slide took a dramatic turn Thursday after a blunt message from Washington shattered lingering hopes of government backstops.
The world’s largest cryptocurrency briefly fell below $70,000, touching $69,936, after U.S. Treasury Secretary Scott Bessent made it clear that the federal government will not ride to crypto’s rescue. The sell-off deepened an already bruising week for digital assets—and reignited fears that Bitcoin’s downturn may have further to run.
The spark came during a tense exchange at the House Financial Services Committee on Wednesday, where lawmakers pressed Bessent on whether the U.S. Treasury could buy Bitcoin or other cryptocurrencies in a crisis.
His answer was unequivocal.
“I do not have the authority to do that,” Bessent said, adding that even in his role as chair of the Financial Stability Oversight Council (FSOC), he lacks the power to step in.
Markets heard the subtext loud and clear: there will be no crypto bailout.
Bitcoin slid sharply following the comments, extending Wednesday’s losses and pushing prices below the psychologically critical $70,000 mark early Thursday.
Michael Burry Drops a Bomb
Fuel was added to the fire by Michael Burry, the investor famed for predicting the 2008 financial crisis, who issued a stark warning about Bitcoin’s future.
In a Substack post, Burry argued that a prolonged downturn could trigger a self-reinforcing collapse.
“A sustained decline in bitcoin’s price could set in motion a death spiral leading to massive value destruction,” he wrote.
Burry dismissed the idea of Bitcoin as a hedge against currency debasement, saying it has been “exposed as a purely speculative asset,” far removed from gold or other traditional safe havens.
The comments landed at a fragile moment for sentiment—and traders reacted accordingly.
A Rough Year Gets Worse
Thursday’s dip only added to Bitcoin’s mounting losses. The cryptocurrency is now down nearly 20% year-to-date, having logged four consecutive months of declines.
Last weekend’s sharp sell-off marked another low point, coinciding with a major macro development: President Trump’s announcement that Kevin Warsh will succeed Jerome Powell as Federal Reserve chair when Powell’s term ends in May.
Markets view Warsh as decidedly hawkish, a stance that threatens tighter financial conditions and less liquidity—historically a toxic mix for risk assets like crypto.
Ether and other major digital tokens followed Bitcoin lower, underscoring the market-wide nature of the retreat.
Sentiment Has “Shifted Meaningfully”
Technical damage is compounding the fundamental concerns.
After Bitcoin broke decisively below the key $73,000 support level, strategists at 10X Research warned that investor behavior has changed.
“Current flows suggest sentiment has shifted meaningfully,” the firm wrote, pointing to positioning data showing that traders are not yet ready to buy the dip.
While some indicators are approaching extreme pessimism, 10X cautioned that the broader downtrend remains intact.
“In the absence of a clear catalyst, there is little urgency to step in,” the strategists said, noting that traders are focused on deleveraging and unwinding positions, not setting up for a classic snapback rally.
Searching for a Floor
Bitcoin’s struggle reflects deeper fragility across the crypto ecosystem. Aside from a brief bounce last month, prices have been under pressure since October, when whale selling and forced liquidations swept through the market.
Still, not everyone is waving the white flag.
Sean Farrell, head of digital assets at Fundstrat, pointed to the mid-$70,000 range as a potential support zone. Around $74,000, Bitcoin marked both the intraday high in March 2024 and the intraday low in April 2025 during a tariff-driven sell-off.
“All else equal, the levels reached over the weekend and the degree of capitulation observed create a more attractive near-term risk/reward,” Farrell wrote, suggesting a modest deployment of dry powder could make sense.
But the optimism came with a warning: broader markets remain unstable, and “ample positioning risk” in traditional assets could still spill over into crypto.
No Safety Net, No Rush Back In
With Washington signaling it won’t step in, influential skeptics sounding alarms, and traders focused on cutting risk rather than chasing bargains, Bitcoin finds itself navigating without a safety net.
Whether the dip below $70,000 proves to be a temporary scare—or the opening act of a deeper unwind—may depend less on crypto narratives and more on macro forces still tightening around the market.
For now, one message is clear: this time, crypto is on its own.