Bitcoin hits 16-month low: What's driving sharp sell-off
Photo: Bitcoin price has been falling since the beginning of the year (Getty Images)
Today, February 6, the price of Bitcoin reached a 16-month low and fell to $60,000, although it recovered slightly at the end of trading, according to Reuters.
The world's largest cryptocurrency rose 1.64% to $64,153.24 at the end of trading, although during the session it reached a low of $60,008.52. This is the lowest level since October 2024.
Ether rose 2.4% to $1,891.27 at the end of trading, falling to a 10-month low of $1,751.94 during trading.
CoinGecko data showed that the global cryptocurrency market has lost about $2 trillion in value since peaking at $4.379 trillion in early October, with more than $1 trillion lost in the last month alone.
Bitcoin thus fell 16% in a week, bringing its decline since the beginning of the year to 27%. Ether was down 17% for the week, with losses since the beginning of the year reaching 36%.
The cryptocurrency exchange rate has been significantly affected by recent sales of precious metals and stocks. Gold and silver, for example, have become more volatile as a result of leveraged buying and speculative flows.
For some time, the fate of Bitcoin was linked to the broader technology sector. The price tended to rise, especially amid investor enthusiasm for artificial intelligence.
"Bitcoin drifting back toward $60,000 is not crypto dying, it is the bill coming due for Treasuries and funds that treated bitcoin as a one-way asset without real risk controls, just as we have seen sharp corrections in self-proclaimed safe-haven assets like gold and silver when leverage and narrative ran ahead of reality," says Joshua Chu, co-chairman of the Hong Kong Web3 Association.
According to him, cryptocurrencies have been struggling in recent months after a record crash in October last year. This has led to a cooling of investor sentiment towards digital assets.
