Warnings about Bitcoin’s future have increased, with several analysts confirming that any further decline from its current levels near $60,000 could deal another blow to investors’ sentiment, at a time when investment inflows are starting to slow, while a large segment of individual investors is turning to AI and technology stocks instead of digital assets.
Matt Maley, chief strategist at Miller Tabak, said that continued pressure on Bitcoin could lead to further declines in investor confidence, adding that while Wall Street firms are still investing in the digital assets sector, individual investors—who played a pivotal role in previous crypto rally waves—are now favoring investments in technology and artificial intelligence stocks with high growth rates.
He added that exchange-traded Bitcoin funds (ETFs) recorded notable outflows recently, reflecting a drop in investment enthusiasm toward the largest cryptocurrencies by market value.
Decoupling from stocks and new technical risks
Maly noted that Bitcoin has started showing signs of decoupling from stock market performance, raising fears that it may not benefit from any potential rally in global financial markets, unlike what happened in previous periods when it moved in parallel with high-risk assets.
He also pointed out that rapid developments in quantum computing raise new questions about the security risks that cryptocurrencies may face in the future if this technology becomes capable of threatening the encryption systems they rely on.
Mali believes that these factors combined pose additional challenges for the cryptocurrency market, especially amid the continued cautious mood that dominates investors.
Technical analysts warn of a crucial level
These concerns align with the technical outlook put forward by John Roque, chief technical analyst at 22V Research, who confirmed that Bitcoin is currently re-testing its first downside targets at the $60,000 level, with an extremely small margin.
A research memo issued on Friday explained that breaking this level—which was a scenario that had been expected for some time—could pave the way for a broader drop that might push the coin to the $40,000 level.
This scenario suggests that the $60,000 level represents one of the most important current support levels, and that losing it could significantly change the coin’s technical picture.
A glimmer of hope on the regulatory front
Despite this cautious view, Maley believes there is a factor that could support the cryptocurrency market in the period ahead, namely the expected progress on regulating legislation for the sector within the United States.
It noted that expectations are increasing for Congress to pass a bill that would regulate the cryptocurrency market and establish a clearer legal framework for companies and platforms operating in digital assets.
He explained that clearer regulatory rules would reduce the uncertainty surrounding the sector, which could encourage investment institutions to gradually increase their participation in the cryptocurrency market.
These warnings come as exchange-traded Bitcoin funds recorded the largest monthly outflows since 2024, with institutional investors moving to reduce their exposure to high-risk assets amid rising market uncertainty and growing expectations that interest rates will remain at elevated levels.
Bitcoin reached a peak near $126,000 about 8 months ago, but since then it has faced strong pressure that pushed it down noticeably, entering a new phase in which investors are watching whether it will manage to hold the $60,000 level—or whether breaking it will trigger a deeper selloff in the coming period.
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