Bitcoin slid to its weakest level in more than a year on Friday, briefly testing the critical $60,000 mark as a deepening global selloff in technology stocks triggered a broad retreat from risky assets. The sharp moves underscored how closely cryptocurrencies have become tied to wider market sentiment, particularly swings in high-growth tech shares.
The world’s largest cryptocurrency fell as low as $60,008.52 during volatile trading before rebounding. It was last up 1.64 per cent at $64,153.24, oscillating sharply between gains and losses as investors reacted to fast-moving developments across global markets. The intraday low marked bitcoin’s weakest level since October 2024, a period that preceded Donald Trump’s victory in the U.S. presidential election after he had signalled support for cryptocurrencies on the campaign trail.
Market participants said the speed of the decline reflected a rapid unwinding of crowded trades. Chris Weston, head of research at brokerage Pepperstone in Melbourne, said bitcoin had been falling since October and questioned whether it had been an early warning signal for broader market stress or merely a coincidence. He said many large, popular positions were now being unwound very quickly.
The selloff spread across the crypto complex. Ether, the second-largest cryptocurrency, was last up 2.4 per cent at $1,891.27 after earlier tumbling to a 10-month low of $1,751.94. Despite the late rebound, losses over the week remained steep.
The broader damage has been severe. Data from CoinGecko showed the global cryptocurrency market has lost around $2 trillion in value since peaking at $4.379 trillion in early October. More than $1 trillion of that decline has come in just the past month, highlighting the intensity of the recent pullback.
Bitcoin was on track to fall about 16 per cent for the week, taking its year-to-date losses to roughly 27 per cent. Ether was heading for a weekly drop of around 17 per cent and has fallen about 36 per cent so far this year, reflecting waning appetite for speculative assets.
Crypto sentiment has also been hit by turbulence in other markets traditionally seen as stores of value. Precious metals such as gold and silver have become more volatile as leveraged positions and speculative flows amplify price swings, reinforcing a broader risk-off mood.
Bitcoin’s correlation with technology stocks has been evident for some time, particularly during periods of enthusiasm around artificial intelligence that lifted both tech shares and digital assets. As that enthusiasm has faded, crypto prices have followed suit.
Joshua Chu, co-chair of the Hong Kong Web3 Association, said bitcoin’s retreat toward $60,000 did not signal the end of cryptocurrencies but rather a reckoning for investors who treated the asset as a one-way bet. He said the correction reflected the consequences of excessive leverage and weak risk controls, similar to sharp pullbacks seen in so-called safe havens like gold and silver when speculative narratives outpaced fundamentals.
Cryptocurrencies have struggled for months following a sharp downturn last October that sent bitcoin tumbling from record highs, cooling investor enthusiasm for digital assets. That loss of momentum has been compounded by sustained outflows from investment products tied to crypto prices.
Analysts at Deutsche Bank said in a recent note that U.S. spot bitcoin exchange-traded funds saw outflows of more than $3 billion in January, following withdrawals of about $2 billion in December and $7 billion in November. The persistent outflows suggest that institutional investors, once a key source of support for the market, have become increasingly cautious as volatility resurfaces.
