The world’s largest cryptocurrency, Bitcoin, experienced a significant drop of over 6% to approximately $66,198 on Friday. This decline was attributed to factors such as risk aversion, heavy liquidations, weakness in technology stocks, and concerns over a potential tightening of US monetary policy. Bitcoin recorded its most substantial single-day decrease since late 2024, falling by 12.6% to around $63,300, marking its lowest level since October 2024.
Analysts noted that the retreat of global investors from risky assets led to a downturn in crypto assets, with volatility spreading from precious metals and tech stocks to the cryptocurrency market. Data from crypto market analytics platforms revealed that nearly $1 billion worth of bitcoin positions were liquidated within 24 hours, triggering a chain reaction across crypto markets. Bitcoin has seen a decline of 20.22% this week, 28.86% over the past month, and 32.85% over the last year.
Ether, the second-largest cryptocurrency, also experienced a sharp drop of over 13% in a single day and has recorded a loss of nearly 38% since the beginning of 2026. Observers in the market suggested that the current cycle indicates a reset mode for cryptocurrencies, which might extend over several months rather than a brief correction period.
The enthusiasm in the crypto market waned following the nomination of Kevin Warsh by US President Donald Trump for the Federal Reserve chair position. Investors expressed concerns that a more hawkish Federal Reserve under Warsh could lead to a reduction in the central bank’s balance sheet, thereby withdrawing the liquidity that has been supporting risk assets.
