Bitcoin Reaches $60,000 Following New All-Time High, 2026/02/06 10:44:25

Bitcoin has reverted to a 16-month low as of October 2024, testing a crucial support level at $60,000. Major cryptocurrencies, including Ethereum, also experienced significant declines.

Since reaching a peak of $4.3 trillion in early October, the cryptocurrency market has lost approximately $2 trillion, with over $1 trillion lost in just the past month. The current market capitalization of the leading cryptocurrency stands at $2.2 trillion. Ethereum dropped to a 10-month low of $1,751 but later recovered to $1,927. Solana saw a sharp decline of 11.1%, falling to $80. Bitcoin Cash decreased by 10.6% to $465, while BNB fell by 8.6% to $630.

Bitcoin has dropped nearly 50% from its all-time high, erasing all gains made during Donald Trump’s second presidential term. A month prior to Trump’s election victory in the U.S., following his statements about supporting the development of cryptocurrencies, Bitcoin was trading around $60,000. Many investors were optimistic, believing that a favorable regulatory environment for cryptocurrencies would drive market growth.

Joshua Chu, co-chair of the Hong Kong Web3 Association, suggested that trader sentiment may have been worsened by a recent sell-off in stocks and precious metals. Gold and silver have become more volatile due to leveraged buying.

“Bitcoin returning to the $60,000 mark is not the death of cryptocurrencies; it is a reckoning for treasuries and funds that relied entirely on Bitcoin without risk management. Similarly, we are witnessing a sharp correction in so-called safe-haven assets like gold and silver. Those who made overly large bets on them and believed prices would only rise have now learned through bitter experience what real market volatility and risk management entail,” said Chu.

Recently, hedge fund founder Michael Burry warned that a sustained decline in Bitcoin could trigger a “death spiral” that might devalue not only altcoins but also precious metals.