Bitcoin tumbles toward $60,000, on track for its largest single-day drop since the FTX collapse.

Bitcoin Plummets Toward $60,000 Amid Broad Market Selloff

Bitcoin (BTC) tumbled sharply on Thursday, falling as low as $63,000 in early U.S. trading as this week’s crypto selloff intensified. The largest cryptocurrency is now down more than 10% in the past 24 hours, marking its weakest level since October 2024 and more than 50% below its all-time high of $126,000 reached in early October.

If current trends hold, Feb. 5 could rank among the worst single-day declines in bitcoin’s history. BTC is on pace for a 10.5% one-day drop — its steepest since Nov. 8, 2022, when the FTX collapse pushed prices below $16,000 in a 14.3% selloff.

Analysts are watching key support levels closely. One strategist points to the 200-day moving average, currently between $58,000 and $60,000, as a potential floor. That level also aligns with bitcoin’s “realized price,” the average cost basis of all holders, which could act as multi-year support if the decline continues.

The broader market faced heavy selling pressure as well. Silver plunged 14%, now nearly 40% below its recent peak, while gold fell over 2% to $4,850, about 15% below last week’s record. Software stocks, which often move in tandem with bitcoin, also sold off, with the iShares Expanded Tech-Software ETF (IGV) down more than 3% and 24% year-to-date. The S&P 500 and Nasdaq were each down roughly 1%.

Crypto-focused equities were not spared. Coinbase (COIN), Galaxy Digital (GLXY), MicroStrategy (MSTR), and BitMine (BMNR) all fell more than 10%, while miners including Bitfarms (BITF), CleanSpark (CLSK), Hut 8 (HUT), and Marathon Digital (MARA) posted similar losses.

“Thin liquidity is a big factor,” said Adrian Fritz, chief investment strategist at 21Shares. “Even modest sell pressure can trigger large liquidations.” In fragile markets with few orders to absorb trades, minor sell-offs often cascade into larger price drops.

Despite some claims that the worst may be behind, Fritz believes the market has not yet bottomed. “There’s no confirmed turnaround,” he said, emphasizing that the 200-day moving average remains a critical support level.

XRP lagged other major cryptocurrencies, plunging 19% over the same 24-hour period. While there’s no specific event driving the decline, Fritz noted that “from a technical perspective, there aren’t many support levels for XRP,” leaving the token particularly vulnerable in the current market environment.

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