Bitcoin has plummeted below $US60,000 for the first time since October 2024, as the unwinding of leveraged positions and widespread market volatility intensified a sell-off. This downturn has effectively erased all gains made since the US presidential election, which had initially spurred a surge in cryptocurrency investments.
According to IG market analyst Tony Sycamore, Bitcoin has declined more than 20 per cent this week. This represents the most significant weekly drop since November 2022, following the collapse of FTX. Bitcoin is now trading 52 per cent below its peak of $US126,272, reached in October 2025. Sycamore noted a potential support level at $US58,000, coinciding with the 200-week moving average, adding “Let’s see if it can hold”.
The current downturn marks a stark reversal from Bitcoin’s substantial gains throughout the previous year. The return of a crypto-friendly president had initially drawn investors into digital assets and associated Wall Street investment products. However, market conditions began to deteriorate this month as escalating geopolitical tensions triggered instability across global financial markets and reduced risk appetite.
This led to Bitcoin’s sharp decline starting in mid-January, triggering a cycle of selling as investment funds liquidated holdings to cover redemptions and unwind leveraged positions, further exacerbating the cryptocurrency’s downward trajectory.
