Bitcoin has experienced a significant downturn, falling below $60,000 for the first time since October 2024, reflecting a nearly 20% drop within the week. This decline is primarily driven by the largest buyer, Michael Saylor's Strategy, transitioning to a selling position. Additionally, persistent outflows from spot bitcoin ETFs have compounded the situation, as investors have shifted their focus toward the booming artificial intelligence sector. The current economic landscape, characterized by stubborn inflation and a robust labor market, has led to a reassessment of U.S. monetary policy, with markets now anticipating interest rate hikes instead of cuts. This shift has negatively impacted risk appetite across various markets, including a more than 2% decline in the Nasdaq. Other cryptocurrencies, such as Zcash (ZEC) and XRP, have also faced significant challenges, with Zcash plunging over 40% following the discovery of a critical vulnerability. Overall, the convergence of these factors has resulted in a 52% loss for Bitcoin since its peak above $126,000.