Bitcoin dropped below $60,000 and touched $59,125 on a broad deleveraging wave that hit equities, commodities, and crypto alike. The move marks a 20-month low and erases the entire rally that followed the 2024 election and subsequent policy announcements favoring digital assets.
The selloff was part of a risk-off rotation across markets. Silver fell 7.4%, crude oil 4%, and high-growth tech names slumped. The bond market won the day as yields fell 6 to 9 basis points on a flight to safety. Bitcoin's 5% decline sat in the middle of that carnage, suggesting macro pressure rather than crypto-specific contagion.
Adam Button, writing for InvestingLive, noted that the loss of momentum is structural. Young traders who dominate risk appetite in markets have shifted focus toward AI trades, meme stocks, and options strategies. Crypto has benefited from some of that rotation, but the sector has lost cultural gravity. The same analysts repeating "bitcoin to $1 million" calls have worn out their credibility, Button wrote, and use cases remain limited outside of stablecoins. Stablecoins function as genuine business infrastructure but offer little appeal as speculative assets.
Policymakers offer few levers to reverse the decline. A bitcoin strategic reserve, Button noted, does not appear to be on Congress's agenda despite the broader pro-crypto posture of the current administration. Without new demand catalysts or a pivot away from macro pressure, technicals point lower: a breakdown below current levels could quickly target $50,000, Button argued.