Bitcoin fell below $60,000 for the first time since October 2024 on Friday, marking a sharp reversal for a market that had rallied to above $126,000 just months earlier. The decline accelerated a broader selloff driven by three structural forces: cryptocurrency’s largest buyer turning seller, persistent outflows from spot bitcoin ETFs, and a shift in Federal Reserve rate expectations.
Bitcoin lost nearly 20% in the past week alone, bringing total losses to more than 52% since the October peak. The Nasdaq fell more than 2% on the same day, signaling broader risk-off sentiment across equities and digital assets.
Strategy’s Pivot and ETF Pressure
Michael Saylor’s Strategy, which had positioned itself as bitcoin’s largest single buyer, has shifted to selling. The company’s move away from accumulation came as spot bitcoin ETFs experienced persistent outflows. Investors reallocated capital away from digital assets toward artificial intelligence and related equities, draining liquidity from cryptocurrency markets at a critical juncture.
The outflows coincided with a U.S. labor market report released Friday that reinforced stubbornly elevated inflation readings. Markets that had priced in rate cuts earlier in 2026 have now fully priced in a Federal Reserve rate hike, reversing expectations that had supported risk assets through the first half of the year.
Zcash Vulnerability Exposes Protocol Risk
A separate shock hit privacy-focused cryptocurrency Zcash (ZEC), which plunged more than 40% overnight after a critical vulnerability was discovered. The flaw had gone undetected for four years before being identified with assistance from Anthropic’s Opus 4.8 AI model. The discovery underscored emerging risks in cryptocurrency protocols as AI capabilities advance.
Bitcoin’s previous low was recorded in early February 2026 during an earlier crypto crash. Friday’s break below $60,000 represents a fresh low in the current drawdown cycle, with the exact bottom price not yet disclosed.
Momentum Reversal in Risk Assets
U.S. stocks lost momentum after reaching record highs in recent weeks, reducing risk appetite across markets. The combination of Fed tightening expectations, inflation persistence, and capital reallocation away from crypto and toward AI-focused equities created a hostile environment for bitcoin and digital assets broadly.
The shift marks a dramatic departure from the early-2026 narrative of cryptocurrency recovery and institutional adoption. Strategy’s reversal from buyer to seller is particularly significant given the company’s outsized influence on bitcoin markets as a major accumulator.
