KEY POINTS
- Bitcoin reached a 16-month low by touching the $60,000 support threshold.
- The global cryptocurrency market capitalization has plunged by $2 trillion since October.
- A broader retreat from technology stocks is driving investors away from high-risk assets.
Bitcoin faced intense selling pressure on Friday as its price neared a significant psychological floor. The digital currency dropped to its lowest point since October 2024. This decline marks a dramatic shift from the record highs seen late last year. Investors are rapidly exiting positions that previously appeared crowded and highly profitable.
The current downturn mirrors a broader trend in global financial markets. High-growth technology stocks have suffered heavy losses in recent trading sessions. This shift has triggered a massive liquidation of risky bets across multiple asset classes. Many traders are now prioritizing capital preservation over potential growth.
Market data reveals a staggering loss in total crypto valuation. Since peaking in October 2025, the industry has lost roughly $2 trillion. Over half of that decline occurred within the last month alone. The rapid pace of the selloff has caught many retail investors by surprise.
Volatility remains extremely high as the price fluctuates around the $60,000 mark. This specific level is seen by many analysts as a vital support zone. If the price fails to hold here, further declines could be imminent. Some experts suggest the market is currently experiencing a liquidity stress event.
The sentiment shift also impacted other major cryptocurrencies like Ether. The second-largest digital asset hit a 10-month low during the same period. Its losses for the year have already surpassed 30 percent. This synchronized drop indicates that the entire sector is under systemic pressure.
Precious metals and traditional safe-havens are also seeing unusual price movements. Increased volatility in gold and silver suggests that leverage is being unwound everywhere. Investors are reassessing their risk frameworks in light of changing economic data.
The enthusiasm surrounding artificial intelligence previously helped lift crypto prices. However, concerns about the AI trade are now contributing to the market retreat. Analysts believe the era of treating Bitcoin as a one-way asset is over.
While some remain optimistic about a long-term recovery, the immediate outlook is cautious. The market needs to stabilize before a new trend can emerge. For now, the focus remains on whether Bitcoin can maintain its footing above $60,000.
