Bitcoin tumbled below the $60,000 mark on Friday for the first time since October 2024, extending a prolonged decline that has transformed the world’s largest cryptocurrency from one of the market’s top-performing assets into a major casualty of shifting investor sentiment.
During trading in New York, Bitcoin fell as much as 6% to $59,770, deepening losses that have accelerated over recent months. The cryptocurrency has now shed more than 50% of its value since reaching an all-time high above $126,000 in October 2025.
The decline is particularly notable because Bitcoin is now trading below levels seen when US President Donald Trump returned to the White House, despite expectations that a crypto-friendly administration would boost the digital asset sector.
Why Bitcoin Is Falling
Market analysts point to several factors behind the latest wave of selling pressure.
One of the biggest concerns is the steady withdrawal of funds from Bitcoin-linked exchange-traded funds (ETFs), which had previously played a crucial role in driving institutional demand for cryptocurrencies.
At the same time, investors are grappling with renewed geopolitical uncertainty and concerns about the sustainability of some of the mechanisms that helped fuel the previous crypto bull market.
Particular attention has focused on Strategy Inc., the software company turned Bitcoin investment vehicle co-founded by Michael Saylor.
The company became famous for aggressively accumulating Bitcoin on its balance sheet and inspired numerous firms to adopt similar digital asset treasury strategies. However, growing questions about the long-term viability of that model have added to investor caution.
AI Replaces Crypto As Wall Street’s Favourite Theme
Beyond immediate market concerns, some analysts believe cryptocurrencies are facing a broader challenge: competition for investor attention.
For much of the last decade, digital assets occupied a unique position as one of the most attractive speculative investment themes. Today, however, artificial intelligence has emerged as the dominant focus for both institutional and retail investors.
According to market strategist Michael Antonelli of Baird, capital that once flowed into cryptocurrencies is increasingly being directed toward AI-related opportunities.
“For the longest time, crypto was this hot investment that Silicon Valley and institutions were obsessed with. AI displaced it,” Antonelli said.
The shift highlights how investor enthusiasm has moved away from blockchain-focused assets toward companies and technologies associated with the artificial intelligence boom.
Altcoins Suffer Even Bigger Losses
The selloff was not limited to Bitcoin.
Several major cryptocurrencies posted steeper declines as risk appetite deteriorated across the digital asset market.
Among the biggest losers:
- Ether fell as much as 12.8%, hitting its lowest level since April 2025.
- XRP dropped more than 5%.
- Solana declined over 5%.
- Dogecoin also fell more than 5%.
The broad-based weakness suggests investors are reducing exposure to riskier digital assets amid growing uncertainty about the sector’s near-term outlook.
What Investors Are Watching Next
Market participants are now closely monitoring ETF flows, macroeconomic developments and institutional demand trends for signs of stabilisation.
Analysts say Bitcoin’s ability to hold above key psychological support levels could determine whether the cryptocurrency experiences a temporary correction or enters a deeper bear market phase.
For now, however, the combination of slowing institutional demand, global uncertainty and competition from the booming AI sector has left the cryptocurrency market under significant pressure.