Bitcoin just tested the critical $60,000 threshold, sending shockwaves through crypto markets as more than $2 billion in positions got wiped out in forced liquidations. The world's largest cryptocurrency dipped below $61,000 late Thursday before clawing back to $66,326 by Friday morning - but that recovery might be short-lived. Institutional investors who bought in via ETFs at an average price of $90,000 are now sitting on massive losses, and analysts warn the floor could drop out to $50,000 before summer hits.
Bitcoin's flirtation with $60,000 late Thursday night wasn't just another routine dip - it marked a psychological breaking point for an asset that's now hemorrhaging more than 40% from its record high. The crypto that touched $126,000 in October barely held $61,000 Thursday before staging a weak rally to $66,326 by Friday morning, leaving traders wondering if this is capitulation or just the beginning of a deeper slide.
The carnage in crypto markets is brutal and quantifiable. More than $2 billion worth of long and short positions evaporated Thursday in forced liquidations - those automatic sell-offs triggered when Bitcoin hits preset price thresholds and traders can't cover their margins. By Friday, another $800 million vanished, according to data from Coinglass. These aren't small retail gamblers getting wiped out anymore. The bloodletting is hitting institutional players who piled into Bitcoin through U.S. spot ETFs.
Here's where it gets interesting. Those same ETFs that hoovered up 46,000 bitcoin this time last year have flipped to net sellers in 2026, CryptoQuant reveals. The average entry price for ETF investors sits around $90,000, meaning anyone who bought through these vehicles is staring at gut-wrenching losses. "Institutional investors are really unwinding their cryptocurrency holdings," Markus Thielen, head of research at 10X Research, told CNBC. "These large outflows [are] during U.S. trading hours with those investors throwing in the towel."
The correlation between Bitcoin and U.S. tech stocks continues to haunt the crypto narrative. As the Nasdaq bleeds, Bitcoin follows - risk-off sentiment doesn't discriminate between your favorite AI stock and decentralized currency dreams. Meanwhile, traditional safe havens like gold and silver are experiencing their own volatility episodes, adding another layer of chaos to already jittery markets.
