Investors are dumping risky assets, forcing leveraged positions out of the market and triggering a sharp sell off across cryptocurrencies.
Bitcoin has fallen to about half of its recent peak, extending a brutal downturn that has swept through digital asset markets.
The world’s largest cryptocurrency briefly dropped to around $60,008 on Friday, its lowest level since October 2024 before rebounding above $64,000 amid volatile trading.
This decline has erased much of the optimism that followed a strong rally throughout 2024 and 2025.
Bitcoin has plunged from its record high of nearly $126,000, reached in October 2025. The broader crypto market has also taken a heavy hit.
According to CoinGecko, the total value of the global cryptocurrency market has fallen by roughly $2 trillion with more than $1 trillion of those losses occurring in just the past month.
Pressure on cryptocurrencies has intensified alongside a global sell off in technology stocks as investors retreat from high growth and risk heavy investments.
Also Read: Costco flags 20 new Australian warehouses in five year expansion push
“A lot of these big, crowded positions are being unwound very quickly,” said Chris Weston, head of research at Pepperstone in Melbourne.
After significant withdrawals in January and late last year, investors are now closely watching whether Bitcoin can hold the psychologically important $60,000 level and whether outflows from U.S. spot Bitcoin exchange traded funds begin to slow.
