CoinDesk
Bitcoin slid below $60,000 for the first time since October 2024, dropping as low as $59,XXX in Friday trade and extending a weekly decline of nearly 20%. The largest cryptocurrency has now shed more than 52% from its October peak above $126,000, and the velocity of the move — not just the level — is what traders are reacting to.
Why it matters
Several headwinds converged in a single week. The single most important shift is that Strategy, Michael Saylor's treasury company and bitcoin's largest known buyer, has flipped to net seller — removing the bid that absorbed supply through every prior drawdown. Spot bitcoin ETFs saw persistent outflows as capital rotated into the red-hot AI trade and related equities. Stubbornly elevated inflation plus a hot labor-market print on Friday pushed the market to fully price the Fed's next move as a rate hike, unwinding the cuts that had been the macro tailwind for risk assets.
Market impact
Risk appetite is broadly off: the Nasdaq is down more than 2% Friday after a record run, and the cross-asset selloff is dragging crypto with it. The 52% drawdown from the October peak puts the current cycle in a different regime from the 2022 and 2018 bear markets — there is no single dominant narrative to push back against, just a stack of headwinds. Privacy-focused Zcash (ZEC) plunged more than 40% overnight after a critical vulnerability was surfaced with the help of Anthropic's Opus 4.8 model, adding an AI-crypto risk subplot to the tape. XRP broke below $1.10 before dip buyers emerged near $1.09, with roughly $4M in fresh XRP ETF inflows doing nothing to offset liquidation-style selling. The watch-item for next week is whether Strategy resumes buying at these levels — without that bid returning, $60K is resistance, not support.
Frequently asked questions
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Why did bitcoin fall below $60,000?
Bitcoin dropped below $60,000 for the first time since October 2024 as several headwinds converged: Strategy (Michael Saylor's treasury company) flipped to net seller, spot bitcoin ETFs saw persistent outflows, inflation stayed elevated, and a hot labor-market print pushed traders to fully price the Fed's next move as…
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How much has bitcoin lost from its peak?
Bitcoin has fallen more than 52% from its October 2024 peak above $126,000, and is down nearly 20% in the past week alone — the sharpest leg of the current drawdown.
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Why is Strategy selling bitcoin a big deal?
Strategy under Michael Saylor has been the largest known single buyer of bitcoin across multiple cycles, absorbing supply through every prior drawdown. The company flipping to net seller removes that bid — which is why this cycle's selloff feels structurally different from 2022 or 2018.
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What is the Fed's next expected move?
Markets that earlier this year expected rate cuts have now fully priced the Federal Reserve's next move as a rate hike, following a hot labor-market report and stubborn inflation — a sharp reversal of the macro tailwind that had supported risk assets.
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How are other cryptos and equities reacting?
The Nasdaq is down more than 2% Friday after a record run, Zcash (ZEC) plunged more than 40% overnight after a critical vulnerability surfaced with help from Anthropic's Opus 4.8 model, and XRP broke below $1.10 before dip buyers emerged near $1.09 despite ~$4M in fresh XRP ETF inflows.
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