Bitcoin Hits $60K Amid Deepening Sell-Off and Rising Crisis Fears
Bitcoin has experienced a significant drop of nearly 10% in the past week, as concerns mount over a potential financial crisis that could echo the events of 2008. The bitcoin price has plummeted to around $60,000 per bitcoin, experiencing a significant decline in the past 24 hours as a sell-off rapidly intensifies, all while traders prepare for a “massive trigger.” In a surprising turn of events, the Goldman Sachs chief executive has revealed a bitcoin flip, prompting traders to caution that if bitcoin dips below $60,000, the market “can kiss any recovery goodbye.” David Morrison stated “Bitcoin slid below $63,000 in early trade this morning, extending its monthly decline to nearly 30% and highlighting deeper structural fragility,” indicating a collapse in institutional demand for bitcoin and crypto exchange-traded funds.
This week, data indicated that aggregate bitcoin ETF allocations among the largest hedge fund holders experienced a decline of 28% from the third to the fourth quarter of 2025. “Technical charts show a developing head-and-shoulders pattern, with the $60,000 level emerging as a critical support zone,” Morrison wrote. The recent selloff aligns with the longest miner capitulation phase observed this year, based on data, as declining revenues compel ongoing reserve selling. Institutional demand has shown signs of deterioration, as ETF flows continue to weaken, adding to the downside pressure and heightening the risk of a significant break lower.
Bitcoin at $60,000 “is the most critical support level of this cycle,” noted prominent bitcoin and crypto trader Vinny Lingham on X. “A sharp V-shaped bounce here and it forms a double bottom (strong support). If we lose $60,000, violent cascading liquidations will follow, and any hope for recovery will be lost, at least until the next halving comes around.” Bitcoin’s halving cycle results in a reduction of the number of bitcoin awarded to miners who support the network, with this issuance being halved approximately every four years. Since the inception of bitcoin in 2009, its price has exhibited a boom and bust pattern that aligns with the halving cycle.
The bitcoin price has plummeted by 50% from its peak of $126,000 per bitcoin in October of last year, causing a significant downturn in the broader crypto market as the bubble “implodes,” occurring 18 months after the previous bitcoin halving. “You’ll probably see a bunch of treasury companies for both bitcoin and ethereum blow up, along with [Strategy] dropping below $100 if we lose $60,000,” Lingham wrote, adding he would expect to see a 2022 type blow up if we do lose $60,000—referring to the implosion of the FTX exchange that sent shockwaves through the bitcoin and crypto market.
