Bitcoin Slides to 16-Month Low Near $60,000 as Crypto Market Contracts

Bitcoin, the largest cryptocurrency by market value, slid sharply this week and tested support near $60,000, reaching its lowest trading levels since October 2024 before stabilising around $64,000–$65,000 in Friday sessions. 

The retreat comes amid a wider downturn across digital assets, with the total cryptocurrency market capitalization dropping significantly from peaks seen in late October 2025. Current estimates place the market’s total value around $2.2 trillion, more than $2 trillion lower than its high of about $4.38 trillion just months ago. 

Bitcoin’s current trading levels represent a dramatic reduction from its record peaks above $126,000 in October 2025, marking a fall of roughly 50% over recent months. 

Performance Over One Month and One Year

Over the past month, the cryptocurrency market has experienced accelerated contraction, with roughly $800 billion wiped out from the total valuation in that period alone.  

Looking back over the last year, Bitcoin’s price has fallen from its late-2025 highs to current levels near $64,000, retracing more than 40 per cent of gains made as recently as a few months ago. This retracement coincides with broader risk-off shifts in financial markets and weakened speculative demand.

The recent price slide has been sharp. In the past month, Bitcoin’s value has declined substantially from highs recorded late in the previous quarter. Total cryptocurrency market capitalisation has also shrunk as traders reduced positions in digital assets. Other major cryptocurrencies, such as Ethereum, have posted comparable declines, underscoring that the downturn has not been limited to Bitcoin alone.

Credit: TradingView

Possible Drivers Behind the Downturn

Several factors appear to be contributing to the recent weakness in Bitcoin and the wider crypto market:

1. Shifts in Market Risk Appetite: Risk assets across financial markets have come under pressure, leading investors to reduce exposure to higher-volatility instruments, including cryptocurrencies. This rebalancing has coincided with broader equity market fluctuations.

2. Institutional Outflows: Products such as exchange-traded funds tracking spot Bitcoin have seen notable outflows in recent weeks. When large holders withdraw capital, buying pressure diminishes and selling pressure increases, weighing on prices.

3. Liquidation of Leveraged Positions: Cryptocurrency markets often involve leveraged trading, positions backed by borrowed capital. When prices fall quickly, leveraged positions are automatically closed out, a process that can amplify downward movement.

4. Macroeconomic Uncertainty: Global financial conditions, driven by shifts in growth expectations and liquidity dynamics, have affected investor confidence. In times of uncertainty, investors tend to favour traditional assets with lower volatility.

5. Technical Pressure: From a chart perspective, key technical levels such as the $60,000 support band have drawn market focus. Once these levels were breached briefly, algorithmic and discretionary traders added to selling activity.

Akshat Siddhant, Lead Quant Analyst at Mudrex, said the pullback accelerated after former US President Donald Trump announced Kevin Warsh as a potential Federal Reserve chair, a development markets viewed as less supportive for risk assets. “Persistent outflows from Bitcoin ETFs and heightened US–Iran geopolitical tensions have further weighed on near-term risk appetite,” Siddhant said, adding that ongoing diplomatic efforts could still improve sentiment. He noted that Bitcoin has strong technical support around $59,300, while the $70,000 level remains a key resistance zone in any recovery attempt. He added, “The ongoing correction in Bitcoin reflects broader macro sensitivity rather than any crypto-specific weakness.”

Current Trading Levels 

As of the latest market data, Bitcoin has been trading near $64,000–$65,000, with intra-day volatility pushing prices briefly below $60,000 before modest rebounds. The broader market cap stands in the $2.2 trillion range, significantly down from recent peaks.  At the time of writing, Bitcoin has been oscillating around the low $60,000 range, with intra-day swings as traders and automated systems react to order flow and broader market signals. Cryptocurrency market data platforms place Bitcoin’s price firming up slightly above these lows after initial declines.

Total crypto market capitalisation, the aggregate valuation of all tokens, has also contracted significantly in recent weeks, reflecting the cumulative impact of price falls across major cryptocurrencies.

The sustained weakness has affected not only spot prices but also related segments such as crypto-linked equities and derivative markets. Trading volumes in many digital asset markets have dipped as participants scale back positions, and some exchanges have reported lower fee income as a result.

Outlook Considerations

Market observers note that near-term price behaviour will likely continue to be influenced by risk sentiment in global financial markets, institutional investment flows, and macroeconomic developments. Key technical thresholds remain in focus, and a period of consolidation could unfold if selling pressure eases.

This story will be updated as more data becomes available and as Bitcoin and other cryptocurrencies continue to respond to evolving market conditions.

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