Bitcoin has lost almost half of its value since reaching an all-time high above $123,000 in July 2025, intensifying concerns about the cryptocurrency’s role in long-term investment portfolios.

The world’s largest digital asset fell 13% in June to around $64,400, extending a prolonged downturn that has erased nearly $60,000 from its peak price, according to CNBC.

The latest decline has prompted investors and financial advisers to reassess bitcoin’s risk profile, particularly after years of extreme price swings that have alternated between rapid gains and sharp corrections.

Daniel Sotiroff, Associate Director of ETF and Passive Strategies Research at Morningstar, said the recent selloff highlights the unpredictable nature of cryptocurrency markets. He noted that while bitcoin has historically rebounded from major downturns, forecasting its future direction remains exceptionally difficult.

As a result, many financial planners continue to recommend limiting bitcoin exposure to a small portion of an overall investment portfolio.

The decline has also revived a broader debate over whether bitcoin should be viewed as an investment or a speculative asset.

Robert Johnson, a finance professor at Creighton University, argued that bitcoin differs fundamentally from traditional assets such as stocks, bonds, and real estate because it does not generate earnings, interest income, or cash flows. Without those fundamentals, he said, determining an intrinsic value for bitcoin is challenging, leaving its price largely dependent on investor sentiment and market demand.

Market analysts also point out that bitcoin lacks conventional valuation metrics, making it more comparable to collectibles or other assets whose prices are driven primarily by what buyers are willing to pay.

The recent downturn serves as another reminder of the cryptocurrency’s volatility. While bitcoin has delivered substantial returns over certain periods, experts caution that sharp declines remain a defining feature of the asset class.

For investors, the latest correction underscores a familiar reality: bitcoin can generate extraordinary gains during bull markets, but it can also experience equally dramatic losses when market sentiment shifts.