Bitcoin hovered around the $66,000 level on Friday, potentially putting the world’s largest cryptocurrency on track for a fourth consecutive week of losses as broader financial markets remain under pressure. The market capitalization of cryptocurrencies fell by about 1.67% in the past 24 hours to about $2.26 trillion.
According to market data, Bitcoin maintains an unusually strong correlation with traditional assets, moving roughly in line with the S&P 500 (93%) and gold (91%), demonstrating how interest rate expectations and global macro trends are increasingly driving cryptocurrency price movements.
A sudden reversal from all-time highs
Bitcoin’s current price movement follows a dramatic reversal from its all-time high near $126,000 in October 2025. On October 10, 2025, geopolitical tensions, including proposed 100% tariffs on Chinese goods, triggered a wave of large-scale liquidations, accelerating the economic downturn. Bitcoin fell more than 14% within hours, with about $19 billion in leveraged positions wiped out as technical disruptions at major exchanges intensified the decline.
Since then, the cryptocurrency has lost nearly half of its peak valuation, repeatedly testing the psychologically important $60,000 level amid cooling institutional flows and continued macro uncertainty.
Flashing surrender signal warning
According to on-chain analysis, the recent decline ranks among the biggest capitulations in Bitcoin history. Realized losses, a metric that measures the dollar value of coins sold below their purchase price, amounted to about $2.3 billion on a seven-day average basis, putting the event in the top three to five largest loss spikes ever recorded. Similar events occurred during the market crash in 2021, the collapse of Terra-Luna and FTX in 2022, and the correction in mid-2024.
Source: CryptoQuant
Most of the selling pressure appears to be coming from short-term holders who accumulated Bitcoin between $80,000 and $110,000 and are now exiting with significant losses, while long-term holders have continued to hold on through the economic downturn.
A bailout rebound or a pause in the bear market?
Historically, sudden spikes in realized losses often coincide with short-term pullbacks, with Bitcoin rebounding from about $60,000 to nearly $71,000 following a recent wave of capitulation. But analysts caution that such a recovery could occur within a long-term downtrend, and that the current stabilization may indicate a temporary recovery rather than a firm trend reversal.
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