In the early hours of Saturday, Bitcoin made a notable recovery, regaining the $61,000 mark after a brief dip below $60,000 overnight. The cryptocurrency had fallen to a low of $59,227, but buying pressure emerged, stabilizing the token at around $61,000, reflecting a decrease of approximately 1.3% for the day. Traders had been closely monitoring this critical level, especially as Bitcoin had been trending downward throughout the week due to significant outflows from exchange-traded funds (ETFs) and a notable bitcoin sale by Strategy, marking its first since 2022.
The decline below the important psychological barrier of $60,000 did not escalate into further losses, as the cryptocurrency quickly bounced back, recovering over $1,500 from its lowest point. This selloff was sparked by external factors rather than developments within the crypto market. The U.S. nonfarm payrolls report released on Friday indicated a robust job market. Instead of boosting investor confidence, however, the report caused a significant revaluation of the Federal Reserve’s future rate hike expectations. Financial derivatives now reflect a consensus on a Federal Reserve interest rate increase by the end of 2026, a notable shift from previous predictions that anticipated cuts under the newly appointed chair, Kevin Warsh.
In the broader markets, this shift led to detrimental effects on risk assets. The technology sector was particularly hard-hit, with the Nasdaq 100 experiencing a significant 5% decline—the largest drop since April 2025. The semiconductor sector, a key component of tech investments, saw even steeper losses, plummeting by 10%. The S&P 500 also struggled, dropping 2.6% and ending its streak of ten consecutive weekly gains.
The turbulence extended beyond Bitcoin, severely impacting other cryptocurrencies. Ether, for instance, has seen a staggering decline of 21.6% over the past week, trading at around $1,575. Solana has dropped 23.7% to $63, while other notable tokens, including XRP, Dogecoin, and BNB, registered losses ranging between 13% and 20%. Hyperliquid’s HYPE, which previously showed resilience amid the broader market downturn, has also fallen by 9.9% during the same timeframe.
The leverage situation has exacerbated the selloff, with CoinGlass reporting that approximately $1.60 billion in positions were liquidated across around 308,000 traders over a span of 24 hours. Long positions accounted for around $1.21 billion of those liquidations, with Bitcoin witnessing $534 million and Ether seeing $423 million in liquidations. Additionally, Zcash faced heightened scrutiny, plunging 44% due to a disclosed bug in its Orchard privacy pool, leading to another $115 million in positions liquidated.
With Bitcoin momentarily reclaiming the $60,000 support level, traders are left wondering whether the cryptocurrency can maintain this rebound or if it will face another test below this critical range. A sustained break beneath $60,000 would push Bitcoin back into territory reminiscent of its drawdown in February, raising concerns for investors as the market remains volatile amid shifting economic indicators.
