Bitcoin plunges below $60,000 to lowest since October 2024

Bitcoin tumbled below $60,000 on Friday, reaching its weakest price since October 2024 and breaking the lows of the early February crypto crash.

The largest cryptocurrency has lost nearly 20% in the past week alone and is now down more than 52% from its October peak above $126,000. The sell-off accelerated after Michael Saylor's Strategy, previously the largest single buyer of bitcoin, turned seller. Spot bitcoin ETFs have also suffered persistent outflows as investors rotate capital into the artificial intelligence trade and related stocks. Stubbornly elevated inflation and a hot labor market have added to the pressure, reducing expectations for Federal Reserve rate cuts.

For crypto traders, the breach of $60,000 is a significant psychological and technical level. The drop below that threshold could trigger further selling from stop-loss orders and margin calls. On-chain data shows exchange reserves have been rising, indicating increased selling pressure. Meanwhile, the correlation between bitcoin and tech stocks remains high, meaning any weakness in equities could spill over. For current pricing context, check NowPrice's crypto page.

Looking ahead, traders will watch for the next support level around $55,000, which was a key area during the 2024 rally. The upcoming US CPI report and Fed meeting will be critical for risk assets. If inflation remains elevated, the Fed may maintain its hawkish stance, further weighing on bitcoin. On the positive side, the halving cycle historically leads to recoveries, but the timing remains uncertain.