Bitcoin price plunges to $60,000 amid mass liquidations

Bitcoin came under renewed pressure on Friday, falling to $60,033 in early trading – a sharp decline that further deepened the selloff cycle that began in October. Over the past 24 hours, BTC slid as much as 4.8%, marking a drawdown of more than 50% from its October all-time high of $126,000. The price later rebounded to $66,721, gaining about 5.8% intraday.

The drop coincided with a broad market correction: Solana fell as much as 14% before fully retracing the decline. The period of instability has persisted since October, when a wave of liquidations eroded investor confidence. This week, pressure intensified as leveraged positions unwound alongside broader market turbulence.

Thursday was the most volatile day since November 2022 – the period marked by the collapse of FTX. More than $2.1 billion in long crypto positions were liquidated in the past 24 hours alone, accelerating the selloff.

Liquidity during the Asian session was “exceptionally thin,” according to Ericsenz Capital CIO Damien Loh. He noted that the bounce from $60,000 suggests strong support, but cautioned against expecting a swift recovery as market sentiment remains strained.

Volatility metrics reinforce this picture. The Volmex Index shows expected 30-day BTC volatility jumping from 57% to above 97%. Analysts say the market is in “panic mode,” with some funds viewing current levels as an opportunity for cautious accumulation.

Crypto-exposed companies saw the sharpest declines. Strategy Inc., led by Michael Saylor and the largest corporate holder of BTC, reported a quarterly loss of $12.4 billion due to asset revaluation. The news added pressure to a sector already experiencing outflows: U.S. spot bitcoin ETFs saw $434 million withdrawn on Thursday.

Market attention is now centered on the key $60,000 level. BTC Markets analyst Rachel Lucas warns that a sustained move below that threshold could open the door to further downside into the mid-$50,000 range. As of Friday morning, BTC was trading around $66,093, remaining in a zone of elevated turbulence.

The market expects volatility to persist until clearer macro signals emerge to restore investor appetite for risk assets.