Bitcoin Slides 13%, Falls Below $64,000 as Sell-Off Deepens
Synopsis
Bitcoin price hit a new all-time high at $63,276 this morning after bearish pressure pushed it below $61,000 last evening. In late 2025, the digital token hit a record low of $126,000, only to lose almost half its value in four months. With interest rates climbing, and institutional appetite for bitcoin-based ETFs waning, investors are exiting ‘speculative’ assets. As total market value vaporises into the billions and leading platforms lay off staff, plenty are wondering whether the “digital gold” narrative can endure this frosty 2026 kickoff.
NEW YORK — The cryptocurrency market is stunned after Bitcoin, saw its price suddenly fall by 15% in just 90 minutes. The token fell briefly below $61,000 on Thursday evening, to its lowest level since the 2024 U.S. election. And this most recent fall brings Bitcoin down over 50% from its all-time high of nearly $126,000 in October 2025.
Once regarded as a “haven” against inflation, it is behaving much like a perilous tech stock. There is no one factor behind the decline of Bitcoin, but as interest rates rise and previous traditional investors move capital back to gold and cash, the enthusiasm that fueled last year’s explosive rally has evaporated. Is it the early days of 2026’s very own “Crypto Winter,” or is this a fire sale?
Why the Market is Bleeding
The existing sell-off is the result of a “perfect storm” of economic realities. For the better part of 2025, Bitcoin benefited from the belief it would serve as a global form of payment. However, that hasn’t happened. Instead, a handful of key issues have prompted the crash:
The U.S. Federal Reserve said it would keep interest rates higher for longer, causing investors to abandon “risky” assets such as crypto in favour of bonds. After a year in which large exchange-traded funds (ETFs) bought billions in Bitcoin, they are now net sellers, pumping thousands of tokens back into the market. Bitcoin is following U.S. tech stocks closely, which have been pounded this week.
The “Forced Liquidation” Domino Effect
When the price of Bitcoin declines, it sets in motion a self-reinforcing chain reaction known as “forced liquidation.” Borrowed money is used to bet on the price of Bitcoin by many traders. When the price falls to a certain level, the exchanges automatically sell their holdings to pay back what they owe.
Just this week, more than $2 billion in crypto positions were automatically liquidated. These forced sales send the price lower again, hitting still more “sell” triggers, with the price spinning down in a straight line. Which is why the move down on Thursday from $70,000 to $60,000 happened so fast.
Gold Reclaims the Crown
Supporters of Bitcoin for years debated what it is: digital cash or gold? The numbers for 2026, though, paint a different picture. Traditional gold prices have jumped about 61% in the past year, while Bitcoin has fallen nearly 40%, recently hitting record highs of more than $5,500 an ounce.
Investors are voting with their wallets, and at the moment they prefer the stability of physical gold to digital tokens whipsawing by double digits. And many of the other big cryptocurrencies are hurting even more; Ether fell 33 per cent this week, while Solana reached a two-year low of $88 Thursday.
What Lies Ahead for Investors?
Now, market analysts consider $60,000 a critical psychological floor. If Bitcoin can’t maintain itself above that level, some analysts warn its price could glide back down to $30,000, the point where it was before the 2024 bull run started.
The industry is already hurting, and that pain is being felt. Leading crypto platforms like Gemini have said they are laying off a quarter of their staff and shuttering offices in Europe and Australia in an effort to survive. But the “hype” of June 22, 2019, has been traded in for a harsh fact: Bitcoin ain’t trading on story no more. Its exchange price is now driven by real-time reality, how much cold cash is swirling around the globe and what trade does it want to do?
Key Highlights
- Bitcoin slipped briefly below $61,000, its lowest in more than a year.
- The digital token is down more than 50 per cent from its peak in October 2025.
- More than $2 billion worth of trades were liquidated this week, contributing to the crash.
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