Bitcoin’s price has plunged to a historical low, mirroring the sentiment witnessed during past market crashes like the 2020 COVID-19 selloff and the FTX collapse. This decline is driven by diminished investor participation from both individual and institutional investors, causing widespread apprehension in the crypto market. The substantial drop in Bitcoin’s valuation – over $600 billion since October – has impacted market stability and fueled a risk-averse environment amongst investors. Bitwise CIO Matthew Hougan highlights this with his observation that retail sentiment is extremely negative, suggesting further price declines. Institutional investments are also shrinking significantly, as evident by the halt in ETF purchases, according to analysts closely tracking these trends. Market volatility has become a defining characteristic of the crypto market right now, with miners selling assets and reducing leveraged trading activities, contributing to an unsteady market landscape. Experts, drawing parallels with past downturns like March 2020, are forecasting continued uncertainty in the crypto sector, with potential regulatory changes and shifts in investor behavior. The Bitcoin price may be susceptible to further declines as long-term trends suggest resilience.