Bitcoin fell below $60,000 for the first time since October 2024, extending a sharp market reversal that has wiped out more than half of its value from an October peak of over $126,000.
The world’s largest cryptocurrency dropped as much as 7 percent to $59,101 and was trading at $59,743.21 early on Saturday.
Market participants said Bitcoin has been hit by liquidity shifts, especially among institutional investors, as capital moves into other sectors, attracting fresh attention, including artificial intelligence, defence, energy, and infrastructure.
Analysts also said competition from gold and AI stocks, along with changing expectations around Federal Reserve rate cuts, has added pressure on crypto demand.
Investors are now watching whether Bitcoin can hold the $60,000 to $62,000 support range. A strong hold around that level could help restore confidence in the market. ETF flows, institutional activity, macroeconomic signals, and geopolitical developments are expected to play a key role in the near term.
Some experts believe the next stage of crypto growth will depend on clearer regulations, stablecoin development, and the tokenisation of real-world assets. They said investors should focus more on long-term strategy, risk management, and portfolio allocation instead of reacting only to short-term price moves.
Crypto market sentiment also weakened after President Donald Trump nominated Kevin Warsh as his choice for Federal Reserve chair. Investors viewed Warsh as a more hawkish figure, raising concerns that the Fed could shrink its balance sheet and reduce the liquidity that has supported risk assets.
A recent report said longer-term pressure on crypto assets has also come from institutional exits, including sustained withdrawals from institutional exchange-traded funds. US spot Bitcoin ETFs saw outflows of more than $3 billion in January.
Market watchers have also warned that crypto miners could face forced liquidation if prices continue to fall, as lower Bitcoin prices may put pressure on their cash flow.
Bitcoin had reached its recent peak after gaining strong investor interest following the re-election of US President Donald Trump.
If this article helped you, please consider supporting our work. Every small contribution keeps Abijita.com independent and running.
