Bitcoin sinks below $61,000 for first time since October 2024

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Bitcoin sinks below $61,000

Highlights

Bitcoin dropped below $61,000 to its lowest since Oct 2024, deepening fears of a prolonged crypto winter phase.
Heavy ETF outflows, macro risk-off stress and cascading leverage liquidations are driving one of BTC’s sharpest declines.
Analysts warn miner stress and spillovers into altcoins could extend weakness unless ETF flows and liquidity stabilize.

The decline extends a sharp correction from late-2025 highs, with investors increasingly retreating from risk assets. Traders pointed to sustained selling pressure across spot Bitcoin ETFs, which have shifted from a key driver of inflows to a major source of outflows in recent weeks. The move below $61,000 also triggered another wave of liquidations in leveraged derivatives markets, accelerating losses across the sector. Analysts said the break of such a major psychological threshold risks reinforcing bearish momentum. The drop has renewed fears that crypto may be entering a prolonged “winter” phase rather than a short-lived pullback.

ETF outflows, macro stress and leverage unwinding fuel the selloff

Market participants highlighted a convergence of structural and macro forces behind Bitcoin’s slide. Reports have shown ETF withdrawals intensifying as institutional investors reduce exposure, removing an important pillar of demand that supported prices after the 2024 ETF boom. At the same time, broader macro uncertainty — including tight liquidity conditions and shifting expectations for global interest rates — has weighed heavily on speculative assets.

Bitcoin has increasingly traded in tandem with equities during risk-off periods, behaving more like a high-volatility tech proxy than a hedge. Decrypt noted that the latest leg lower has been amplified by leverage unwinds, with traders forced to exit positions as key support levels failed. This cascade effect has pushed selling pressure across major tokens, deepening the market-wide drawdown. The result has been one of Bitcoin’s steepest declines since its post-ETF rally began.

Miner stress and broader implications for the crypto market outlook

The fall below $61,000 also raises concerns about Bitcoin’s mining economics, with CoinDesk reporting that prices are now trading significantly below estimated production costs. Such conditions can increase miner stress, potentially forcing operators to sell reserves to cover expenses, adding further supply to the market. The downturn has spilled into altcoins and broader crypto-linked equities, reinforcing fears of systemic weakness rather than an isolated correction.

Still, some analysts caution that sharp retracements are common in Bitcoin’s historical cycles and may eventually form a base for recovery if selling pressure stabilizes. Much will depend on whether ETF outflows slow and whether macro conditions ease in the coming weeks. For now, Bitcoin’s break beneath a long-held threshold underscores a market caught between long-term adoption narratives and intensifying short-term panic.

Recently we wrote that Bitcoin has rapidly dropped to $62,500, losing more than half of its peak value. Within hours, BTC broke below the key $65,000–$66,000 zone and is now struggling to stabilize around $62,500.

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