Bitcoin Near $60,000 as Risk Appetite Fades
Bitcoin slid to a 16-month low on Friday, briefly testing the key $60,000 support level, as a global selloff in technology stocks intensified and investors pulled back from riskier assets.
The world’s largest cryptocurrency fell as low as $60,008.52 during volatile trading in Asia before rebounding. It was last up 1.64% at $64,153.24, swinging sharply between gains and losses.
The decline marked Bitcoin’s weakest level since October 2024, shortly before Donald Trump won the U.S. presidential election after signaling support for cryptocurrencies during his campaign.
“Bitcoin’s been going down since October. You could ask whether it was the canary in the coal mine or just a coincidence,” said Chris Weston, head of research at brokerage Pepperstone in Melbourne. “A lot of these big, crowded positions are being unwound very, very quickly.”
Ether also saw heavy selling, dropping to a 10-month low of $1,751.94 earlier in the session before recovering. It was last up 2.4% at $1,891.27.
The broader crypto market has been hit hard. According to CoinGecko data, total market value has fallen by about $2 trillion since peaking at $4.379 trillion in early October, with more than $1 trillion erased in the past month alone.
Bitcoin is on track to post a weekly decline of around 16%, bringing its year-to-date losses to 27%. Ether is heading for a 17% weekly drop and is down roughly 36% so far this year.
Investor sentiment toward cryptocurrencies has been further dented by sharp selloffs in other asset classes, including stocks and precious metals. Gold and silver have also become more volatile as leveraged trading and speculative flows unwind.
Bitcoin has increasingly moved in tandem with the technology sector, having benefited in recent years from investor enthusiasm around artificial intelligence and high-growth assets.
“Bitcoin drifting back toward $60,000 is not crypto dying,” said Joshua Chu, co-chair of the Hong Kong Web3 Association. “It’s the bill coming due for funds and investors that treated bitcoin as a one-way trade without proper risk controls.”
“Those who bet too big, borrowed too much, or assumed prices only go up are now learning what real market volatility and risk management look like,” he added.
Despite the rebound attempts, cryptocurrencies have struggled for months following a sharp selloff last October that sent Bitcoin tumbling from record highs, highlighting the sector’s continued vulnerability to broader market stress.
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