Bitcoin Sinks on Crypto Market Pullback

Bitcoin fell to around $66,000 on Friday, giving up most of its recent gains as cryptocurrencies came under renewed pressure. The decline followed warnings from Standard Chartered about further Bitcoin weakness, alongside disappointing results from US crypto exchange Coinbase. Bitcoin has dropped more than 45% from its October peak above $126,000, and repeated failed rebounds indicate waning speculative demand. Coinbase reported a $667 million loss in the fourth quarter, with revenue down over 20% to $1.8 billion, underscoring the impact of falling token prices on trading activity. Analysts caution that while Bitcoin could recover, a sustained breach below $60,000–$58,000 may trigger deeper losses toward the high $40,000s. Year-to-date, Bitcoin is down 23.9%, reflecting broader weakness in the tech sector.

Bitcoin stabilized above $70,000 on Monday after sharp swings at the end of last week. Sentiment showed tentative improvement as US Bitcoin exchange-traded funds recorded significant inflows, with investors stepping in following the recent market decline. Still, traders remained cautious, with analysts noting that uncertainty persists over whether the worst is behind the market. Last week, Bitcoin wiped out all of its price gains since the election of US President Donald Trump, plunging to $60,033, its lowest level since October 2024. The cryptocurrency’s decline, mirrored across other digital assets, coincides with investor concerns over stretched tech valuations and the uncertain timing of Federal Reserve rate cuts. Analysts also highlight thinning liquidity as a serious risk, noting that Bitcoin’s average market depth has fallen sharply since October 2025.

Bitcoin rebounded above $65,000 from the two-year low of $60,000 earlier on Friday, as investors took advantage of cheaper prices following the plunge across cryptocurrencies in early February. Bitcoin remained around 30% lower year-to-date, trading at around half the value since its record high four months prior as a deterioration in its narrative was magnified by a selloff in a wide range of speculative assets. The higher share of Bitcoin in institutional portfolios made it more vulnerable to derisking, which recently dominated trades following higher volatility and margin requirements in precious and base metal derivatives. Other portions of the market also tie the decline in cryptocurrency holdings by retail traders on the broader range of substitutes for speculative trading, including leveraged ETFs with exposure to AI companies, zero-day options for equities, and the rise of betting markets.