Bitcoin reached a 16-month low on Friday and tested a key support level of $60,000, as a global sell-off in technology stocks deepened and wiped out risky bets across all asset classes, Reuters reports, writes UNN.
Details
The world's largest cryptocurrency rose 1.64% to $64,153.24 in volatile trading, fluctuating between gains and losses after hitting a low of $60,008.52 earlier in the session.
This was its lowest level since October 2024, a month before Donald Trump's victory in the US presidential election, after he stated his intention to support cryptocurrencies during his campaign.
"Bitcoin has been falling since October (2025), perhaps it's worth asking if this was a warning sign or just a coincidence," said Chris Weston, head of research at brokerage Pepperstone in Melbourne.
"Many of these large, crowded positions are closing out very, very quickly," he noted.
Crypto market volatility leads to $2.5 billion in Bitcoin liquidations03.02.26, 08:25 • [views_5192]
Ether was last up 2.4% at $1891.27, after earlier in the session falling to a 10-month low of $1751.94.
According to CoinGecko, the global cryptocurrency market has lost about $2 trillion since peaking at $4.379 trillion in early October, with more than $1 trillion lost in the last month alone.
Bitcoin is projected to lose 16% for the week, bringing its year-to-date losses to 27%. Meanwhile, Ether is projected to decline 17% for the week, with year-to-date losses of 36%.
Sentiment towards cryptocurrencies has been affected by recent sell-offs in precious metals and stocks. Gold and silver, for example, have become more volatile as a result of leveraged buying and speculative flows.
Bitcoin's fate has for some time been closely tied to the broader technology sector. Its price has tended to rise, especially amid investor enthusiasm for artificial intelligence.
"Bitcoin's return to the $60,000 mark is not the death of cryptocurrencies, it's a reckoning for treasuries and funds that viewed Bitcoin as a one-way asset with no real risk control, just as we've seen sharp corrections in self-proclaimed safe-haven assets like gold and silver when leverage and narrative outpaced reality," said Joshua Chu, co-chair of the Hong Kong Web3 Association.
"Those who bet too big, borrowed too much, or assumed prices only go up are now learning the hard way what real market volatility and risk management are all about," he noted.
Cryptocurrencies have been struggling for several months after a record collapse last October, when Bitcoin fell from its peak.
This has led to a cooling of investor sentiment towards digital assets.
Deutsche Bank analysts noted in their report that US spot Bitcoin ETFs saw outflows of over $3 billion in January, following outflows of about $2 billion and $7 billion in December and November, respectively.
Bitcoin plummets below $70,000, erasing gains since Trump's victory05.02.26, 16:29 • [views_2588]