Bitcoin has experienced a significant downturn, dipping below the $60,000 mark on Friday for the first time since early 2024. The leading cryptocurrency, which has long been a barometer for the crypto market, was last seen trading at $59,909, reflecting a decline of approximately 6% for the day and a staggering 18.5% drop over the past week. This plummet is part of a broader trend affecting other major cryptocurrencies, with Ethereum falling 23% over the week to reach $1,555 and Solana experiencing a similar decline of 22%, now priced at $63.75.
This downturn represents a dramatic decrease for Bitcoin, which has lost more than 52% from its all-time high of $126,080 achieved last October. The recent declines have been attributed to several factors, including increasing outflows from exchange-traded funds (ETFs) as well as Strategy’s first Bitcoin sale since 2022. However, the most recent slide appears to be driven by strong U.S. jobs data, which has sparked expectations for an interest rate hike later this year. Additionally, concerns regarding the security of crypto and blockchain systems have been amplified by a significant vulnerability discovered in Zcash, a privacy-oriented cryptocurrency.
The U.S. Department of Labor reported that employers added 172,000 jobs in May, nearly double analysts’ expectations. This strong economic data has led traders to anticipate rate hikes, a scenario that typically does not favor Bitcoin’s price trajectory. Nicolai Søndergaard, a research analyst at Nansen, stated, “Strong jobs data kills the rate cut narrative. Bitcoin, already down 15% and sitting on uncleared leveraged longs, has no macro catalyst to recover into, and Middle East tensions are keeping risk appetite soft across markets.”
While Zcash developers have patched the identified bug, there remains uncertainty regarding whether the vulnerability was exploited to mint unlimited ZEC. This has resulted in a dramatic 40% decrease in Zcash’s price over the past 24 hours. The incident has cast a shadow over the entire crypto ecosystem, prompting fears that powerful AI models might be used to uncover similar vulnerabilities in other major assets.
In a turn of events, U.S. spot Bitcoin ETFs managed to halt a 13-day streak of outflows on Thursday, registering a small influx of over $3 million. However, this is a minor reversal compared to the billions that have been withdrawn from these funds, which have seen overall flows turn negative for 2026.
The broader market is feeling the pressure as well. The Nasdaq has dropped by 2.5% since the market opened, with notable declines in tech stocks, including Nvidia, which saw a 4.5% decrease in its shares. Within the crypto sector, companies like Strategy and Coinbase have not been immune to the market downturn, with shares of Strategy down nearly 10% and Coinbase dropping 8.4% on the day. As the implications of the current market dynamics continue to unfold, investors remain cautious about the potential for further shifts in the cryptocurrency landscape.
