Bitcoin fell to the low-$60,000 range, marking a 16-month low before quickly rebounding above $70,000.
Federal Reserve policy concerns and a stronger US dollar triggered heavy selling across risk assets, including BTC.
High leverage and liquidations increased volatility, with key support now seen near $55,000 - $60,000.
Bitcoin recently dropped to its lowest level in 16 months, falling into the low-$60,000 range during heavy selling. The price briefly touched near $60,000 before recovering to above $70,000 within 2 days. This sudden drop erased a huge part of the gains made during the late 2025 rally, when BTC was trading close to $100,000. The decline surprised many market players, emphasizing the cryptocurrency market's volatility.
The sell-off happened quickly, and thousands of dollars were moved in just a few hours. Liquidations in the futures market added more pressure. When leveraged traders were forced to close their positions, it created a chain reaction, pushing prices even lower. At the same time, short-term traders stepped in to buy the dip, causing sharp rebounds. This back-and-forth made the market extremely volatile and confusing for many participants.
The rising concern about tighter monetary policy in the United States is one of the main reasons behind the drop. The nomination of the Federal Reserve chair increased fear that interest rates could stay higher for a longer time. Higher interest rates usually make risky assets like Bitcoin less attractive, as investors choose safer returns in traditional markets.
The US dollar strengthened as expectations for tighter policy grew, increasing pressure on global assets, including cryptocurrencies. Many traders reduced their exposure to risky assets, adding to Bitcoin’s fall. The broader financial markets also showed signs of stress, which made the overall sentiment even more negative.
The fall in Bitcoin price also affected companies with large BTC holdings on their balance sheets. Several public firms had purchased Bitcoin during the 2024 and 2025 rally. With the recent decline to $60,000, these companies reported significant mark-to-market losses.
Some firms are now facing increased scrutiny from investors and analysts. When prices fall sharply, it raises questions about risk management and long-term strategy. Volatility has been difficult to manage for institutions that entered the market near peak levels. However, many long-term holders express confidence in Bitcoin’s overall potential.
Also Read - Bitcoin Price Slides as Derivatives Reshape Market Control: What's Next?
Bitcoin moved from $60,000 to above $70,000 within 48 hours after the drop. This kind of rebound suggests that there is still strong demand at lower levels. However, technical analysts are watching key support between $55,000 and $60,000. If BTC prices fall below this zone, further decline could happen.
On the other hand, resistance near the $75,000 level is important. A sustained move above that area could restore bullish momentum. Derivatives data indicate that open interest is still elevated, which means leverage stays high. High leverage can create sharper moves in both directions. Exchange inflows have also increased at times, showing that some holders are sending coins to exchanges, possibly to sell.
Also Read - Is More Downside Coming for Bitcoin and Ethereum? Experts Weigh In
Market analysts are discussing two main scenarios. In one case, the recent drop could turn out to be a healthy correction after a long rally. Bitcoin may trade sideways for some time, building a base before trying a higher move. Long-term believers argue that fundamentals such as limited supply and growing adoption stay intact.
In the second scenario, continued macro pressure and tighter financial conditions could push prices lower again. If interest rates stay high and the dollar stays strong, risk appetite may weaken further. This could lead Bitcoin back toward the $55,000 area or even lower.
Currently, the market is uncertain. Volatility may continue in the short term as traders react to economic data and central bank signals. The recent 16-month low has reminded everyone that Bitcoin is still a highly volatile asset, and sudden moves can happen when least expected.
Why did Bitcoin drop to a 16-month low?
Bitcoin declined mainly due to fears of tighter Federal Reserve policy, rising interest rates, and broad risk-off sentiment in financial markets.
What price did BTC fall to?
BTC dropped into the low-$60,000 range, briefly trading near $60,000 before recovering above $70,000 within 48 hours.
Is this the start of a bear market?
It is not confirmed. Some analysts see it as a healthy correction after the late-2025 rally, while others warn of further downside if macro pressure continues.
What are the key support and resistance levels?
Major support is between $55,000 and $60,000, while resistance is seen near the $75,000 level.
How are companies affected by the price drop?
Firms holding large Bitcoin reserves are facing mark-to-market losses, which may impact investor confidence and financial reporting.