The global crypto market suffered one of its worst shocks in years this week as heavy selling wiped out more than $2 trillion in value. Bitcoin, the world’s largest cryptocurrency, briefly plunged to a 16-month low, falling close to 52 percent from its record high reached just four months ago.
Data from CoinMarketCap showed Bitcoin touching $60,074 early Friday, down more than 16 percent in 24 hours. The token had traded above $126,000 in October 2025, but a mix of global tech stock losses, ETF outflows, and sharp liquidations has dragged prices into a deep correction.
By late morning in India, Bitcoin had recovered slightly to around $65,000, yet the overall picture remained grim: market cap down nearly 9 percent to $1.3 trillion, and 24-hour trading volumes soaring more than 90 percent as $143 billion worth of Bitcoin changed hands.
Analysts say the drop shows how fragile the market has become. Avinash Shekhar, CEO of Pi42, said repeated failed rebounds have kept investors “on the defensive” as liquidations continue to accelerate. Bitcoin now trades at its weakest level since late 2024.
The latest slump comes as global stock markets face their own turbulence. Wall Street ended Thursday sharply lower, with the Nasdaq falling 1.6 percent after days of tech-driven losses. Asian markets followed the same pattern early Friday.
South Korea’s Kospi slipped 1.7 percent, Hong Kong’s Hang Seng fell 1.2 percent, and Australia’s ASX 200 dropped 1.6 percent. Even as Japan’s Nikkei recovered 0.5 percent, sentiment across Asia remained cautious.
Vikram Subburaj of Giottus called the mood “classic risk-off,” pointing to tightening liquidity and rising macro uncertainty. That fear extended to precious metals as well. Gold fell 1 percent to $4,843 per ounce, while silver dropped more than 6 percent.
The crypto market’s total capitalization has dropped to $2.22 trillion, down from a peak of about $4.39 trillion in October 2025. More than $1 trillion evaporated in just the last month.
Major altcoins also faced brutal losses on Friday. Ethereum, Solana, BNB, XRP, Dogecoin, Cardano, and Bitcoin Cash all slid between 9 and 13 percent.
Part of the panic was fueled by remarks from U.S. Treasury Secretary Scott Bessent, who said the government would not bail out cryptocurrency markets. Shortly after, investor Michael Burry warned that Bitcoin’s continued fall could trigger a “death spiral,” further spooking traders.
Bitcoin’s price swung violently in the past 24 hours, hitting a high of almost $73,200 before crashing to $60,074 — a 17.9 percent intraday drop. By Friday morning, it was still down nearly 14 percent from the previous day.
Zerocap analyst Emir Ibrahim said the plunge was the result of a massive unwinding of leveraged positions. Thin liquidity and oversized bets created a chain reaction of forced selling that temporarily pushed Bitcoin below $63,000. He noted that this mirrors the broader flight from risk assets, with the Nasdaq down 4.5 percent since Monday.
The crash also rattled crypto-linked companies. Hut 8 and MicroStrategy fell more than 11 percent, CleanSpark and Marathon dropped over 10 percent, Coinbase slid more than 8 percent, and Circle was down over 5 percent.
Market strategist Joel Kruger said the sell-off shows clear signs of “capitulation,” pointing to oversold indicators and extremely low fear-and-greed index readings.
The crypto crash underscores how quickly sentiment can shift when global markets turn risk-averse. With more than $2 trillion wiped out and volatility at extreme levels, traders face weeks of uncertainty as they watch whether Bitcoin can stabilize or continues its downward slide.
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