Bitcoin slid sharply on Friday, briefly falling to around $60,000 as investor sentiment deteriorated to its weakest level since mid-2022. The drop marked the cryptocurrency’s lowest price since October 2024 and capped its largest single-day decline in more than three years.
The sell-off followed a steep fall in market confidence, with fear indicators sinking to levels last seen during the collapse of a major blockchain ecosystem in 2022. Bitcoin shed more than 13% in 24 hours, wiping out over $10,000 from its price before rebounding modestly to trade just above $64,000.
Crypto Fear & Greed Index fell to a score of 9 out of 100 on Friday.
Breakdown Below Key Long-Term Support Raises Alarm
A major technical signal intensified bearish concerns. Bitcoin fell below the 200-week exponential moving average, a long-term trend indicator historically breached only during deep bear markets. The move places the asset roughly 50% below its all-time high near $126,000, reached in early October.
Mass Liquidations Accelerate the Decline
Forced liquidations played a significant role in the downturn. Over the past day, roughly 588,000 traders were wiped out as leveraged positions unraveled, triggering approximately $2.7 billion in liquidations. The majority of losses came from bullish bets on Bitcoin, amplifying downside momentum as prices fell.
The sharp decline underscores how fragile sentiment has become, with leverage and fear combining to drive extreme volatility across the crypto market.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.