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Bitcoin continued massive losses on Friday after an already painful week for cryptocurrency investors, falling to lows set in October 2024. The flagship cryptocurrency was last down to $59,099.25.

Over the course of the week, it was down 16%. After Michael Saylor’s company, Strategy, sold a small portion of its bitcoin holdings, the decline started. As a result, sentiment was negatively impacted, and hundreds of millions of dollars in liquidations were required, which accelerated the downward pressure.

A better-than-expected May jobs report on Friday increased Treasury yields and put pressure on riskier assets, worsening losses. The stock had its worst week since November 2022 after strategy recovered earlier losses but ended the day down 6.9 percent and the week down 24 percent.

The latest weekly drop in bitcoin, according to Syz Group chief investment officer Charles-Henry Monchau, was caused by both Strategy’s selling and a crowding-out effect from hot money chasing other assets. “The market also anticipates that upcoming monster IPOs will divert some retail money into the new stocks, and speculators are going all in on AI stocks and memory chips, especially in Korea,” Monchau emailed CNBC.

Additionally, as legislative priorities change and lawmakers continue to disagree on important aspects of the bill, the Clarity Act, the crypto market structure bill that is the primary driver of renewed investor interest in bitcoin, is becoming increasingly unattainable.

The stock market has reached all-time highs in recent months due to the uncertainty surrounding the Iran war, which has put pressure on bitcoin. Due to the divergence, investors are doubting both of the prevailing narratives surrounding bitcoin: that it is “digital gold” and should profit from geopolitical unpredictability.