Bitcoin plunged sharply on Friday, touching a 16-month low and testing the psychologically important $60,000 level as global financial markets came under pressure. The world’s largest cryptocurrency fell to an intraday low of $60,008.52, its weakest level since October 2024, before recovering modestly amid high volatility. The sharp swings reflect fragile investor sentiment as selling intensified across technology stocks, precious metals, and other risk assets.

The latest fall was driven by heavy liquidations in the crypto market, with more than $1 billion worth of Bitcoin positions unwound in just 24 hours. At the same time, institutional demand has weakened, with US spot Bitcoin exchange-traded funds recording sustained outflows over recent months. Analysts note that these ETF outflows have kept persistent pressure on prices, limiting any meaningful recovery.

The broader crypto market has also suffered steep losses. Total market capitalisation has fallen by nearly $2 trillion from its October peak, with more than $1 trillion wiped out in the past month alone. Other major cryptocurrencies, including Ether, have seen even sharper declines, underlining widespread stress across digital assets.

Bitcoin’s performance continues to mirror movements in technology stocks and other leveraged assets. As equities and metals sold off due to tighter liquidity and speculative unwinds, cryptocurrencies were caught in the same risk-reduction cycle. Experts say repeated failures to sustain rallies above the $70,000–$72,000 zone have reinforced a defensive market tone, keeping volatility elevated.

Market participants are now closely watching the $58,000–$60,000 support band, which remains technically significant. While continued weakness in global markets could push Bitcoin lower, analysts suggest that a stabilisation in risk sentiment and reduced volatility may attract selective buying interest. For now, caution dominates as investors track global liquidity conditions and broader financial market trends.