Bitcoin loses $60,000, falls to weakest price since October 2024
Several headwinds converged over bitcoin recently as its largest buyer turned seller, ETF investors headed for the exits, and rate-hike fears rose.
What to know:
- Bitcoin fell below $60,000 for the first time since October 2024.
- It’s down nearly 20% just this week following news that the crypto’s largest buyer (Strategy) turned seller.
- ETF outflows, the prospect of interest rate hikes and speculative money focused on the AI trade have added to the pressure on bitcoin.
Several headwinds have converged over bitcoin recently — the most important being its largest single buyer, Michael Saylor’s Strategy, having turned seller. Additionally, spot bitcoin ETFs suffered persistent outflows as investors pulled capital from the sector, instead allocating it to the red-hot artificial intelligence trade and related stocks.
Stubbornly elevated inflation and a hot labor market report Friday also prompted investors to rethink the path of U.S. monetary policy. Markets that earlier this year expected rate cuts have now fully priced in the Federal Reserve’s next move as a rate hike.
With that, U.S. stocks have lost momentum after a powerful run to record highs, weighing on risk appetite across markets. The Nasdaq is lower by more than 2% Friday.
Crypto investors have also been grappling with renewed concerns about whether artificial intelligence and quantum computing could expose weaknesses of crypto protocols. Privacy-focused cryptocurrency Zcash (ZEC) plunged more than 40% overnight after a critical vulnerability was discovered with the help of Anthropic’s latest Opus 4.8 AI model.
