Major sell-off in the crypto market as Bitcoin's price falls below the crucial $60,000 mark for the first time since October 2024.
During the US trading session, Bitcoin fell by about 7% to reach $59,101. This is the first time since October 2024 that the world's most popular digital currency is trading below this level.
Last October, Bitcoin had touched its all-time high of over $126,000. Its price has now fallen by more than half from that peak, which is a major setback for investors.
Market experts believe the main reason for this decline is the flow of investor money into other sectors. In recent months, sectors like Artificial Intelligence (AI), defense, energy, and infrastructure have rapidly attracted investors.
According to Nischal Shetty, founder of WazirX, "Many large institutional investors are now investing elsewhere after making good profits in Bitcoin. When enthusiasm for a new sector grows in the market, the flow of investment also turns in that direction."
Additionally, the rise in gold prices and the growing attraction of AI company stocks are also significant factors. Investors are now considering these options safer than crypto.
Akshat Siddhant, Lead Quant Analyst at Mudrex, says that uncertainty regarding future interest rate cuts by the US Federal Reserve is also affecting the market.
However, experts do not see this as an unusual situation. Such declines in Bitcoin due to profit-taking have been seen before, but investor confidence has returned later.
The next few days will be extremely important for Bitcoin's future. The market's eyes are now fixed on the $60,000 to $62,000 level.
If Bitcoin succeeds in strengthening its position above this range, a positive sentiment could return to the market, and a price recovery could be expected.
But if this level is breached, the selling pressure could intensify, leading to a further drop in prices. Investors are being advised to remain cautious.
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