Bitcoin narrowly avoids falling under $60,000 as it bounces off lows
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bitcoin It has rebounded from its recent low after narrowly avoiding falling below the $60,000 level on Friday, but some market commentators suggested more selling was to come.
By late Thursday, the world’s largest cryptocurrency had fallen below $61,000 and hovered just above $60,000. As of 4:54 a.m. ET on Friday, Bitcoin was trading at $66,015, recovering slightly.
A number of factors contributed to the Bitcoin bear market, which began after Bitcoin reached a record high above $126,000 in October.
Why is Bitcoin falling?
These sales took place during a period when the decline in technology stocks in the USA continued. Bitcoin is often associated with risky assets such as US tech stocks, in which case it is bearish.
Meanwhile, other assets such as gold and silver It is very volatile and adds to the confusion in the markets.
Forced liquidations, where traders’ positions are automatically sold once Bitcoin reaches a certain price, continue to drive the crypto market lower. According to Coinglass data, long and short positions worth more than $2 billion in cryptocurrencies were liquidated on Thursday. That figure was nearly $800 million on Friday.
Meanwhile, there are signs that large institutional investors are selling assets.
bitcoin
U.S. exchange-traded funds, which bought 46,000 bitcoin this time last year, are net sellers in 2026, CryptoQuant said.
“Institutional investors are really releasing their cryptocurrency holdings,” Markus Thielen, head of research at 10X Research, told CNBC’s “Access Middle East.”
Thielen said the average price people paid for bitcoin through an ETF was $90,000, and those investors were “monetarily at a loss right now.”
“These big breakthroughs [are] “Investors are throwing in the towel during US trading hours,” he added.
How low can Bitcoin fall?
Bitcoin is currently more than 40% below its all-time high. Other digital currencies fared even worse. Ether And XRP 60% lower than record levels solana More than 70% off.
Market analysts said that Bitcoin falling below $70,000 could signal further declines.
Meanwhile, Thielen said 10X Research predicts Bitcoin could soon drop to $50,000, followed by a possible minor bounce.
“I think we’re going to have a little rally with a reverse trend that could go sideways or bounce a little bit,” Thielen said. “But I think we’ll see another decline in the summer months.”
