Bitcoin Price Analysis: BTC Slumps Below $67,000, More Pain Ahead?

Bitcoin (BTC) briefly slipped below $67,000 on Tuesday, extending its four-week decline amid market volatility as investors grappled with the potential impact of artificial intelligence (AI) on the broader economy. Software stocks continued their downturn with the IGV ETF down 3% over the past 24 hours and 32% since October.

Analysts expect Bitcoin to consolidate as markets look for a catalyst to draw capital out of AI stocks and commodities and back into crypto. The flagship cryptocurrency is down nearly 1% over the past 24 hours, trading around $67,808.

Poland Vetoes Second MiCA Bill

Poland has vetoed a second Markets in Crypto-Assets Regulation (MiCA) framework, triggering further uncertainty for local platforms as a key deadline approaches. President Karol Nawrocki said the second bill was “practically identical” to the version vetoed previously. The veto comes after the Polish Financial Supervision Authority (KNF) warned that Poland has yet to designate a competent authority to supervise the cryptocurrency market as the MiCA transition deadline of July 1, 2026, approaches. However, local platforms have alternative jurisdictional solutions in the pipeline, as stated by Kanga Exchange co-CEO Slawek Zawadzki,

“This does not change our strategy. From the beginning, we considered the possibility that the MiCA-implementing law in Poland might not enter into force in time, and we prepared alternative jurisdictional solutions accordingly.”

Both MiCA frameworks triggered sharp criticism from crypto market supporters, highlighting deep divisions within the Polish government about how to regulate digital assets. President Nawrocki has signalled a more crypto-friendly approach by rejecting the proposals, while Polish politician Tomasz Mentzen called the proposals “extensive regulations” that could stifle innovation.

Strategy Adds 2,486 BTC Amid Ongoing Downturn

Michael Saylor’s Strategy has announced its latest Bitcoin purchase, acquiring 2,496 BTC for $168 million. The latest purchase takes the company’s total Bitcoin holdings to 717,131 BTC, valued at around $50 billion at current prices. The company funded its latest purchase by selling shares, a move that further dilutes its shareholders. The company has $7.8 billion in common shares and an additional $20 billion in preferred STRK shares. Strategy has over 312 million in outstanding shares, with shareholder dilution set to continue due to Michael Saylor’s Bitcoin acquisition strategy.

Lobby Group Urges Senate To Pass Bill Protecting Crypto Devs

Coin Center, a prominent crypto lobby group, has urged the US Senate Banking Committee to push a bill that prevents crypto protocol developers from being prosecuted for their projects. Senators Cynthia Lummis and Ron Wyden introduced a new version of the Blockchain Regulatory Certainty Act (BRCA). The act clarifies that software developers and infrastructure providers who don’t control user funds cannot be classified as money transmitters under federal law.

Jason Somensatto, Coin Center Policy Director, has already told the Senate Banking Committee that blockchain innovation in the US will be stifled if developers face threats of prosecution while engaging in activities that should be considered lawful. According to Somensatto, the bill ensures crypto developers can develop systems that a market structure bill is designed to promote and protect.

Bitcoin (BTC) Price Analysis

Bitcoin (BTC) briefly slipped below $67,000 on Tuesday, extending a four-week downturn as the market grappled with concerns about AI’s impact on the broader economy. The flagship cryptocurrency dropped to a low of $66,679 on Wednesday before rebounding to $68,144. It revisited $67,000 on Wednesday before moving to its current level of $68,180, rising marginally over the past 24 hours. Noelle Acheson, the author of the Crypto is Macro Now newsletter, stated that investor sentiment is weak despite adoption by legacy institutions.

“Sentiment is clearly bleak in crypto markets. There is strong progress in adoption by traditional institutions, but this is not reflected in overall prices, which depresses sentiment even more.”

Wall Street also witnessed another volatile session as uncertainty around AI and its impact on the economy grew. Investors are also increasingly skeptical that spending on AI will pay off anytime soon. Lack of capital remains a substantial roadblock preventing a sustained recovery for Bitcoin. Spot Bitcoin ETFs shed $360 million last week, marking a fourth consecutive week of outflows. Analysts expect Bitcoin to continue consolidating below the $70,000 mark until a fresh catalyst to drive price action emerges. Investors are also unsure if Bitcoin has found a bottom. While most agree that $60,000 is a key level, they fear it may not hold if risk appetite drops further. Robin Singh, chief executive officer of crypto tax platform Koinly, stated,

“One macro wobble, another wave of uncertainty, or even just sustained chop in the mid-$60,000s could easily tip this into a sharper flush back into the $50,000s.”

Bitcoin is currently trading between the 200-week simple moving average (SMA) and the 200-week exponential moving average (EMA). Historically, major Bitcoin bottoms have formed between the 200-week SMA and EMA, indicating that the flagship cryptocurrency is forming a bottom between these levels. Trader and analyst Rekt Capital warned of further downside in the absence of meaningful upside.

“While Bitcoin has produced a weekly close above the 200-week EMA for the second week in a row, this doesn’t mean it is now in the clear. The absence of any meaningful upside from here going forward, there is a risk that BTC loses the 200-week EMA in time, triggering additional downside.”

Crypto investor Ted Pillows highlighted the importance of a close above $71,000 to increase Bitcoin’s chances of a bullish breakout, stating,

“BTC has been ranging between $66,000-$71,000 for some time now. For a rally, Bitcoin needs a daily close above the $71,000 level. And if a breakdown happens below $66,000, BTC might revisit $60,000.”

Bitcoin (BTC) started the previous week in the red, registering a marginal decline to $70,101. The price fell 1.85% on Tuesday, slipping below the $70,000 mark to $68,803. Selling pressure intensified on Wednesday as BTC fell 2.59% to $67,024. The flagship cryptocurrency encountered volatility on Thursday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as the price fell 1.22% to $66,208. Despite the overwhelming selling pressure, BTC rebounded on Friday, rising nearly 4% to $68,812.

Source: TradingView

Price action was mixed over the weekend as BTC rose 1.42% on Saturday to reclaim $70,000. However, it was back in the red on Sunday, dropping 1.43% to $68,792. BTC faced volatility at the beginning of the week, ultimately registering a marginal increase. It returned to bearish territory on Tuesday, dropping over 2% to $67,466. The flagship cryptocurrency is up almost 1% during the ongoing session, trading around $67,884.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Bitcoin Price Analysis: BTC Slumps Below $67,000, More Pain Ahead? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.