Bitcoin plunged below the key $60,000 mark on Friday, hitting its lowest level since October 2024 as investors rushed to exit risk assets amid weak demand, ETF outflows, and changing interest-rate expectations.
The world’s largest cryptocurrency has now lost more than half its value from its October 2025 peak of over $126,000, raising fresh concerns about the outlook for digital assets.
Bitcoin fell as much as 7% to around $59,100 during US trading hours before recovering slightly. The sharp decline marks a dramatic reversal for an asset that had surged following the re-election of US President Donald Trump, who was widely viewed as supportive of the crypto industry.
Why is Bitcoin falling?
Market experts point to a combination of institutional profit-taking, capital rotation, weak demand, and macroeconomic pressures.
Nischal Shetty, Founder of WazirX, said institutional investors are booking profits and reallocating capital to sectors currently attracting stronger interest, including artificial intelligence, defense, energy, and infrastructure.
“Capital naturally moves toward opportunities where investors see better returns. We’ve witnessed similar phases in previous market cycles where short-term selling pressure temporarily weighed on Bitcoin before capital eventually returned,” he said.
Akshat Siddhant, Lead Quant Analyst at Mudrex, noted that competition from gold and AI-related stocks has intensified as investors reassess the outlook for US Federal Reserve policy.
The sell-off was further aggravated after Michael Saylor’s Strategy (formerly MicroStrategy), one of the largest corporate holders of Bitcoin, sold a small portion of its holdings. The move triggered negative sentiment across crypto markets and contributed to large-scale liquidations.
ETF outflows
Another major factor behind the decline has been persistent outflows from spot Bitcoin exchange-traded funds (ETFs), which had previously been a key source of institutional demand.
Bitcoin ETFs recorded only a modest net inflow of $3 million on Thursday, ending a record 13-session streak of outflows. Total net assets held by Bitcoin ETFs have dropped to about $80.4 billion from $107.8 billion in mid-May.
Market activity has also slowed significantly. According to CryptoQuant data, spot crypto trading volume fell to $679 billion in April, the lowest monthly level since October 2023, indicating weaker investor participation.
Macro headwinds
The cryptocurrency market came under additional pressure after a stronger-than-expected US jobs report led investors to scale back expectations of interest-rate cuts.
Higher Treasury yields and a stronger dollar reduced appetite for speculative assets, including cryptocurrencies. Technology stocks also came under pressure, with the Nasdaq falling sharply during Friday’s session.
Analysts say the changing interest-rate environment has made investors more cautious toward high-risk assets.
Alert investors!
Experts believe the $60,000-$62,000 zone will be a crucial support range for Bitcoin in the coming days.
Investors should monitor ETF flows, institutional participation, Federal Reserve policy signals, and geopolitical developments. Capital flows into competing sectors such as AI and energy may also influence crypto market liquidity.
Sumit Gupta, Co-founder of CoinDCX, said the next phase of growth is likely to be driven by regulatory clarity, stablecoin innovation, tokenisation of real-world assets, and deeper institutional participation.
What should investors do now?
Experts advise against making emotional decisions during market corrections.
A disciplined investment approach, including systematic investing and proper portfolio allocation, can help investors navigate volatility. Most financial experts suggest limiting crypto exposure to 2%-5% of an overall portfolio, while experienced investors may consider allocations of up to 10%.
They also recommend focusing on fundamentally strong assets, with Bitcoin remaining the core holding for investors seeking long-term exposure to the cryptocurrency market.