Bitcoin rebounded from a 16-month low on Friday, testing the $60,000 level after a global sell-off in technology stocks triggered a washout of risky bets across various asset classes. The world’s largest cryptocurrency rose 3.3% to $65,198.20, recovering from an earlier 5% drop to $60,008.52. Despite the recovery, Bitcoin remains near its weakest level since October 2024.
Ether also experienced a similar bounce, climbing nearly 4% to $1,919.37 after nearing a 10-month low of $1,751.94 earlier in the session. The overall crypto market has seen a significant decline, shedding approximately $2 trillion in value since peaking at $4.379 trillion in early October, according to CoinGecko data. Over $1 trillion was wiped out in the past month alone.
Bitcoin is on track to decline 15% for the week, bringing its year-to-date losses to 26%. Ether is headed for a 16% weekly drop, with losses of nearly 36% so far this year. According to Joshua Chu, co-chair of the Hong Kong Web3 Association, Bitcoin’s recent movements reflect the repercussions for those who treated it as a risk-free asset, similar to corrections seen in other assets like gold and silver.
Cryptocurrencies have faced challenges since a significant crash last October, leading to a cooling of investor sentiment towards digital assets. Deutsche Bank analysts noted that U.S. spot Bitcoin ETFs experienced outflows exceeding $3 billion in January, following outflows of $2 billion and $7 billion in December and November, respectively.
