On Wednesday, Bitcoin lost the psychologically important $60,000 support level. Exchange data from Binance shows that the magnitude of sell-off was massive, as $470 million worth of sell orders hit the exchange in just 1 minute.
Bitcoin crashes below $60,000, again
Since creating its latest all-time high value of $126,080 back in October 2025, this is the 3rd instance that BTC has fallen below $60,000. However, unlike the previous 2 instances, analysts fear that this time the downtrend may be longer.
On Binance, BTC felt the pressure as it saw sell orders worth $1.2 billion within an hour, exerting strong downward pressure on the leading cryptocurrency. The high volume of sell-off goes on to show how stacked the Binance order books were with Bitcoin sell orders around the $60,000 level.
On the positive side, it also shows Binance’s ability to absorb high liquidity during times of market distress. Analysts attributed the sell-off to a potential liquidity crunch in the wider economy, as precious metals like gold, silver, platinum also recorded major losses.
Similarly, oil fell below $74 per barrel, while the S&P 500 and Nasdaq remained relatively flat on the session. On the flipside, the DXY – an index that measures the strength of the USD against a basket of major global currencies – surged and claimed the $100 mark.
Due to the U.S.-Iran conflict in the Middle East, possibilities of the U.S. Federal Reserve cutting interest rates have essentially been ruled out. As a result, appetite for risk-on assets like cryptocurrencies has nosedived among investors.
As for how long BTC can fall, crypto market commentator Ted Pillows said that Bitcoin bottomed about 34 percent below the 200 week moving average during the last market cycle.
A 20 percent drop below the 200 week moving will send Bitcoin to $50,000, which could be the zone from where it takes a bullish reversal.
In the same vein, crypto analyst Henry dubbed BTC’s dip “a gift”, adding that it has formed a bearish head and shoulders pattern on the 6-hour chart. In the chart shared below, Henry suggested that BTC may fall further to $57,300.
Asset managers are bullish BTC
While BTC’s current price action doesn’t inspire a lot of confidence, asset management firms and banks are still leaning bullish on the top cryptocurrency by market cap. On Wednesday, asset manager 21Shares reiterated its stance saying that BTC is likely to rebound to $100,000 by the end of 2026.
Similarly, Strategy continues to bolster its BTC reserves despite the poor performance of its stock. On Friday, Franklin Templeton unveiled a new ETF which leverages a dividend-based strategy to offer its holders exposure to BTC.
