Bitcoin Slide Rattles Markets As $60,000 Tested

(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

Bitcoin fell sharply on Friday, sliding to a 16-month low and briefly testing the psychologically important $60,000 level as a broad sell-off in technology shares spilled into risk-sensitive assets, intensifying volatility across global markets.

The world's largest cryptocurrency touched an intraday low close to $60,000 before rebounding, trading modestly higher later in the session at around $64,000 as buyers stepped in. The wide swing underscored fragile sentiment after weeks of pressure on digital assets, with leveraged positions unwound and risk appetite thinned by turbulence in equity markets.

The drop marked bitcoin's weakest point since October 2024, a period that preceded Donald Trump's victory in the United States presidential election, when expectations that a more crypto-friendly stance could emerge from Washington had buoyed prices. Those hopes have since been tempered by tighter global financial conditions, a reassessment of technology sector valuations, and continued uncertainty around regulation and liquidity.

Market participants said the sell-off reflected a convergence of factors rather than a single catalyst. Heavy losses in global technology stocks triggered margin calls and portfolio rebalancing, prompting investors to trim exposure to assets viewed as higher risk. Cryptocurrencies, which have increasingly traded in tandem with growth stocks during periods of stress, were caught in the downdraft.

Analysts also pointed to the steady strengthening of the US dollar and elevated government bond yields as additional headwinds. Higher yields reduce the appeal of non-income-producing assets such as bitcoin, while a firmer dollar can pressure prices by tightening global liquidity. Together, those forces have weighed on speculative trades across asset classes.

See also ADIA taps Australian assets for multibillion-dollar debt raise

The speed of the decline raised questions about whether bitcoin had been signalling broader market weakness. Chris Weston, head of research at brokerage Pepperstone in Melbourne, said the prolonged slide since late last year invited debate over whether the cryptocurrency had acted as an early warning of stress building elsewhere or whether the timing was coincidental. Either way, he said, the violent price action showed how quickly sentiment can shift.

Data from derivatives markets showed a sharp rise in liquidations as prices fell, with long positions forced out during the descent towards $60,000. Such washouts can amplify volatility, pushing prices beyond levels suggested by spot demand before stabilisation sets in. Some traders said the rebound later in the session reflected short-term bargain hunting rather than a clear change in underlying mood.

Beyond immediate market mechanics, longer-term trends continue to shape bitcoin's trajectory. Institutional participation has expanded over the past two years through regulated investment vehicles and custody services, lending the asset greater visibility but also increasing its sensitivity to macroeconomic swings. When large funds reduce risk, their actions can magnify moves in crypto markets that were once dominated by retail traders.

Regulatory developments remain another source of uncertainty. While several jurisdictions have moved to clarify rules around digital assets, enforcement actions and policy debates continue to inject unpredictability into pricing. Investors remain alert to signals from major economies that could alter the operating environment for exchanges, miners and institutional holders.

Despite the sharp fall, some analysts cautioned against drawing sweeping conclusions from a single volatile session. Bitcoin has a history of deep corrections followed by periods of consolidation, and long-term holders often view drawdowns as part of the asset's maturation process. Network activity and on-chain metrics, they noted, have not shown signs of structural deterioration even as prices swung lower.

See also Emirates NBD secures $1bn via sustainability bonds

Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.

MENAFN06022026000152002308ID1110704636