Bitcoin narrowly avoided falling below the key US$60,000 level on Friday, bouncing off recent lows as the world’s largest cryptocurrency continues to face pressure from forced liquidations, ETF selling, and broader market volatility.
The token traded at US$67,977.70 as of 10:16 a.m. ET, up about 7 percent on the day. Late Thursday, Bitcoin dipped below US$61,000 and hovered just above $60,000 before recovering slightly in early Friday trading to US$66,326.78. The bounce provides some temporary relief, but analysts warn that further declines could be ahead.
Bitcoin has seen a sharp drop since reaching a record high above US$126,000 in October 2025. The recent sell-off has been influenced by multiple factors, including falling U.S. tech stocks, volatile precious metals, and forced liquidations of leveraged positions. According to Coinglass data, more than US$2 billion in long and short crypto positions were liquidated on Thursday, with an additional $800 million liquidated on Friday.
Market observers also point to a broader trend of institutional investors reducing exposure to cryptocurrencies. Markus Thielen, head of research at 10X Research, told CNBC that many large holders, particularly those who purchased Bitcoin via exchange-traded funds (ETFs) last year at an average price of $90,000, are now “materially in losses” and are increasingly selling during U.S. trading hours. CryptoQuant data indicates that ETFs, which bought 46,000 Bitcoin in the same period last year, are net sellers in 2026.
“The institutional unwind is a major factor driving price pressure,” Thielen said. “We may see a small counter-trend rally or sideways movement, but another low is likely later this year.”
Bitcoin is now more than 40 percent below its all-time high. Other major digital currencies have suffered even larger losses: Ether and XRP are down more than 60% from record highs, while Solana has declined by more than 70 percent. Analysts suggest that a drop below US$70,000 could signal further downside, with some projections estimating Bitcoin could fall as low as US$50,000.
The cryptocurrency’s performance continues to show correlation with broader risk assets, particularly U.S. technology stocks, which have also experienced recent turbulence. Additionally, volatility in gold and silver markets has contributed to uncertainty across financial markets, indirectly impacting digital assets.
Despite the current sell-off, Bitcoin retains interest from both retail and institutional investors who see long-term potential in digital currencies and blockchain technology. However, the market’s high volatility underscores the risks associated with leveraged positions and speculative trading.
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Forced liquidations remain a key driver of short-term price swings. These occur when traders’ positions are automatically sold as Bitcoin hits predetermined price levels, adding to downward pressure during market corrections.
Analysts say the next few months could be pivotal in determining Bitcoin’s trajectory. While short-term rallies are possible, market participants are closely watching investor behavior and institutional flows for signals of sustained recovery or continued weakness.
“Bitcoin’s path will likely involve intermittent bounces, but structural pressure from prior over-leveraged positions and ETF selling may push prices lower before a broader recovery can take hold,” Thielen added.
As cryptocurrency markets adjust to current conditions, Bitcoin’s ability to maintain key support levels such as US$60,000 will be critical. Analysts caution that failure to hold these levels could open the door for further losses toward the US$50,000 range, while resilience could offer opportunities for stabilization and renewed investor confidence.
