"Worst day since the FTX crisis"...Bitcoin 'halves' from its peak

Bitcoin plunged more than 10% in a single day, sliding to $60,000. That is about half of the all-time high ($126,199) set in October last year. Analysts say the crypto market has been gripped by its worst bout of capitulation selling (Bloodbath) since the 2022 "FTX collapse" (down about 15%).

On the 5th (local time), Bitcoin at one point fell to $60,000 intraday on Binance’s Tether (USDT) market. That is the lowest level since October 2024 and below the peak from the 2021 bull market. The current price is down more than 50% from the record high posted in early October.

Experts pointed to thinning market liquidity as the main driver of the sharp drop. Adrian Fritz, chief investment strategist at 21Shares, said, "The market is extremely short of liquidity right now, so even a small amount of selling can trigger large-scale liquidations." With bid and ask depth thin, a wave of panic selling sent prices sharply lower, which in turn triggered forced liquidations—repeating a vicious cycle, he explained.

Crypto-related stocks were also hit hard. Major names that tend to move in tandem with Bitcoin—such as Coinbase, Galaxy Digital, and MicroStrategy—each tumbled more than 10%. Mining stocks including Bitfarms and CleanSpark also posted double-digit declines, falling in tandem. The Nasdaq and the S&P 500, both heavy in tech, slipped in the 1% range as fear spread across the broader market.

Market attention is now focused on where the bottom may be. While some have raised optimism that the correction is over, Fritz drew a line, saying, "There is still no sign that a bottom has been put in." He added that there is no clear rebound signal, leaving the door open to further declines.

Fritz said the $58,000–$60,000 zone, where the 200-day moving average sits, is a key support level. "This range coincides with the average cost basis of all Bitcoin holders and will serve as a strong support level to gauge price action over the next several years," he said.