Bitcoin drops under $60,000 for the first time since October 2024

Bitcoin fell below $60,000 on Thursday, marking its first drop to that level since October 2024 amid a broad-based selloff in crypto and traditional markets. The price of the largest cryptocurrency by market capitalization dropped over 13% in a day, reaching as low as $62,965. This decline continued a downward trend that has seen Bitcoin lose nearly 50% of its value from its all-time high above $126,000.

The sell-off was exacerbated by broader market volatility, with silver and gold also experiencing sharp declines, and software and tech stocks underperforming. Analysts attributed the pressure to thin liquidity in the crypto market, which can amplify price swings and trigger cascading liquidations. Additionally, the nomination of Kevin Warsh as the next Federal Reserve chair, seen as a hawkish signal for cryptocurrencies, intensified selling pressure.

Bitcoin ETF holders are also significantly underwater, with an estimated average acquisition price near $90,000. This dynamic has made it difficult to attract new institutional investment, as many existing holders are already regretting their exposure at current levels.

Despite the sharp drop, some analysts suggest that Bitcoin may not have reached a bottom yet. "Bitcoin remains in a larger bear-market structure," noted 10X Research, emphasizing that downside risks remain elevated in the absence of a strong catalyst. Key support levels are now in focus, particularly the $58,000 to $60,000 range, which aligns with the average cost basis of current holders.

The market remains in a state of uncertainty, with no clear signs of a near-term reversal. Investors are closely watching for signals that could indicate whether this is a temporary correction or the beginning of a deeper bear market.