Bitcoin plummeted towards $60,000 as the crypto market faced a crisis, with no clear catalyst driving the drop. Bitcoin hit a low of $60,062 on Thursday, down 52% from its record high. Other digital assets like ether and solana also dropped, signaling waning investor confidence in the crypto market.

Bitcoin rebounded to $69,631.97 on Friday, but investors are re-evaluating its utility as a digital currency or store of value. Institutional appetite for bitcoin is decreasing, with spot bitcoin ETFs seeing outflows. The current bear market is macro-driven, not due to a structural issue within crypto.

Investors are skeptical of bitcoin as “digital gold” compared to traditional safe havens like gold. Bitcoin’s 28% decline in the past year contrasts with gold’s 72% increase, casting doubt on bitcoin’s safe haven status. Institutional outflows are growing as investors anticipate further declines in bitcoin’s price.

Efforts to market bitcoin as an alternative to fiat currencies have faded, with firms slowing or pausing bitcoin purchases. Concerns about bitcoin’s network being hacked and driving the token to zero are rising. Despite dwindling trader appetite, some long-time believers still support bitcoin.

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3. The Dow Jones Industrial Average surges more than 800 points as news of a potential Covid-19 vaccine boosts investor confidence. The S&P 500 and Nasdaq also reach record highs as markets rally on the positive vaccine development.: Bitcoin gets slashed in half. What’s behind the crypto’s existential crisis