Written by Frode Skar, Finance Journalist.
Bitcoin crashes toward 60,000 dollars as historic free fall deepens
A sharp acceleration in losses reshapes market expectations
Bitcoin extended its steep decline on Thursday, falling sharply toward the 60,000 dollar level as a historic sell off intensified across the cryptocurrency market. The move represents one of the most severe short term drawdowns in recent years and underscores a broader collapse in confidence surrounding the world’s largest digital asset.
At its lowest point during the session, bitcoin was trading near 60,000 dollars, a level not seen since October 2024. The drop marks a fall of more than 50 percent from the all time high reached just under four months ago, when bitcoin peaked above 126,000 dollars.
Key technical levels fail under heavy selling pressure
The latest leg lower unfolded rapidly. Bitcoin first slipped below 70,000 dollars early in the day, breaking a level widely viewed as a critical psychological support. Selling pressure then accelerated, pushing the price through 65,000 dollars and eventually toward the low 60,000 range by the evening.
Although the price recovered modestly from the session lows, the breach of multiple support levels in a single trading day has raised concerns that downside momentum remains intact. Such moves often trigger algorithmic selling, forced liquidations and additional risk reduction by leveraged traders.
Four months erase half of bitcoin’s value
The scale of the decline is striking even by cryptocurrency standards. Since its early October peak, bitcoin has lost more than half of its market value in less than four months. The speed of the drawdown places the current move among the most aggressive corrections in bitcoin’s history.
While sharp cycles have defined bitcoin in the past, the current decline stands out for occurring after a period of unusually strong institutional participation and elevated expectations of long term adoption.
Flight to safety reshapes capital flows
The sell off has coincided with a broader shift in global markets toward safety. Rising geopolitical uncertainty and heightened macroeconomic risk have pushed investors toward traditional safe haven assets, particularly gold and silver, which have surged to historic highs in recent weeks.
As risk appetite has faded, capital has flowed out of speculative assets. Bitcoin, which has increasingly traded in correlation with equities rather than as a hedge, has been caught on the wrong side of this rotation.
Institutional flows reverse direction
One of the most significant developments has been the apparent reversal in institutional demand. Large investment vehicles that previously absorbed supply are now seeing sustained outflows, removing an important source of price support.
The withdrawal of institutional capital has amplified volatility and reduced market depth, making price moves more abrupt and disorderly. Without steady long term buyers, bitcoin has become more vulnerable to sharp downside moves driven by sentiment and liquidity conditions.
Technology stocks add to downside pressure
The crypto sell off has unfolded alongside renewed weakness in technology stocks. Major tech indices have fallen sharply in recent sessions, reinforcing a risk off environment across global markets.
This alignment has further challenged the narrative of bitcoin as an uncorrelated asset. Instead, the price action suggests bitcoin remains tightly linked to broader financial conditions and investor risk tolerance.
Crypto exposed to forced liquidations
Another factor accelerating the decline has been forced liquidation activity. As prices fall through predefined thresholds, leveraged positions are automatically closed, increasing sell pressure in a self reinforcing cycle.
Such dynamics tend to produce sharp intraday moves and contribute to the sense of disorder that has characterized recent trading in digital assets.
Echoes of past boom and bust cycles
Bitcoin’s current plunge revives comparisons to earlier periods of extreme volatility. After reaching record levels in late 2021, bitcoin collapsed by nearly 80 percent over the following year before stabilizing.
The present decline follows a similar pattern of rapid appreciation followed by an equally rapid loss of confidence. While past cycles eventually gave way to recovery, they were often preceded by prolonged periods of consolidation and reduced speculative interest.
A market driven by liquidity rather than narrative
Market participants increasingly argue that bitcoin is no longer trading on visionary narratives about monetary transformation. Instead, price movements are being dictated by liquidity conditions, capital flows and macroeconomic stress.
As financial conditions tighten and risk capital retreats, bitcoin has struggled to attract sustained demand, exposing the fragility of recent gains.
What lies ahead for bitcoin prices
Analysts warn that if the 60,000 dollar area fails to hold as a durable support, the market could face further downside before stability returns. Much will depend on whether broader financial conditions improve and whether institutional investors re enter the market with conviction.
For now, bitcoin remains trapped in a phase of heightened volatility, declining confidence and heavy technical damage. The historic free fall of recent months has reshaped expectations, reminding investors that despite growing maturity, the cryptocurrency market remains highly sensitive to shifts in global risk sentiment.
