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Bitcoin It narrowly avoided the key milestone of breaking below $60,000, rebounding from Friday’s recent lows, but some market commentators suggested more selling is on the way.
Late Thursday, the world’s largest cryptocurrency fell below $61,000 and hovered just above the $60,000 level. As of 4:54 a.m. ET on Friday, Bitcoin has recovered slightly and is trading at $66,015.
Many factors have contributed to the Bitcoin bear market that began after Bitcoin hit an all-time high of over $126,000 in October.
Why is Bitcoin falling?
The decline comes amid a continued decline in U.S. tech stocks, as Bitcoin is often correlated with risky assets such as U.S. tech stocks, and when it comes to risky assets, it falls.
On the other hand, other assets such as gold and silver are highly volatile, leading to market turmoil.
Cryptocurrency markets continue to fall due to forced liquidations (automatic selling of traders’ positions when Bitcoin reaches a set price). There were more than $2 billion in long and short positions in cryptocurrencies liquidated on Thursday, according to data from Coinglass. That figure was about $800 million as of Friday.
On the other hand, there are signs that major institutional investors are selling their holdings.
Bitcoin
According to CryptoQuant, a U.S. exchange-traded fund (ETF) that bought 46,000 bitcoins this time last year will be a net seller in 2026.
“Institutional investors are actually unwinding their crypto holdings,” Markus Thielen, head of research at 10X Research, told CNBC’s “Access Middle East.”
Thielen said the average price people paid for Bitcoin via ETFs was $90,000, and those investors “are currently sitting on significant losses.”
“These large outflows are happening during US trading hours and investors are throwing in the towel,” he added.
How far can Bitcoin fall?
Bitcoin is currently down more than 40% from its all-time high. The situation for other digital coins was even worse. ether and XRP While more than 60% below its all-time high; Solana It’s over 70% off.
Market analysts said a drop below $70,000 for Bitcoin could signal further downside.
Meanwhile, Thielen said 10X Research believes Bitcoin could see a small rebound soon, but could fall to $50,000.
“I think it’s going to be a bit of a counter-trend rally that could be sideways or maybe rebound a little bit,” Thielen said. “But I think it will be at its lowest again during the summer.”
