Bitcoin slid sharply on Friday, extending a bruising run that has unsettled investors and punctured the optimism that once surrounded the world’s largest cryptocurrency. By the early hours of the morning, the digital asset had dropped almost 14 percent, trading around $62,900 at about 01:00 GMT, a level not seen for months and far removed from the euphoric highs of late 2024.
The latest fall adds to a string of steep losses that began last weekend, when Bitcoin broke below the psychologically important $80,000 mark. Since the beginning of the year, its value has now eroded by roughly one-third, underscoring how quickly sentiment has shifted in a market long known for extreme volatility.
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Only months ago, Bitcoin appeared unstoppable. Prices surged after the re-election of US President Donald Trump, as traders bet that a new administration would usher in a more accommodating regulatory environment following years of crackdowns and uncertainty. That rally culminated in December 2024, when Bitcoin briefly crossed the $100,000 threshold for the first time, cementing its status as a speculative darling of global markets.
The mood, however, has cooled dramatically. Since October, when Bitcoin touched a record high above $127,000, the cryptocurrency has struggled to find stable footing. Analysts point to a mix of geopolitical tension, shifting monetary expectations, and unresolved regulatory questions as factors weighing heavily on prices. Central to the uncertainty is a Trump-backed bill aimed at regulating digital asset trading, which has stalled in the US Senate amid sharp disagreements between traditional banking institutions and crypto firms over oversight and consumer protections.
Adding to the unease, the Trump family’s cryptocurrency venture, World Liberty Financial, has drawn scrutiny on Capitol Hill. Lawmakers are examining reports that representatives linked to an Abu Dhabi official agreed to invest $500 million for a significant stake in the firm, raising questions about transparency, influence, and foreign involvement in politically connected crypto projects.
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Bitcoin’s decline has also unfolded against a broader backdrop of market stress. Global equities and commodities have been hit by heavy selling, as investors reassess risk across asset classes. On Wall Street, the benchmark S&P 500 slid 1.2 percent on Wednesday, while the tech-heavy Nasdaq Composite fell about 1.6 percent. Shares of Amazon plunged more than 11 percent in after-hours trading after the company unveiled plans to spend $200 billion on artificial intelligence infrastructure, reigniting fears of an overheated tech sector.
Across the Asia-Pacific region, the sell-off was equally stark. South Korea’s KOSPI dropped around 5 percent in early trading, while Australia’s ASX 200 and Japan’s Nikkei 225 declined by more than 1 percent and 1.6 percent respectively. Even traditional safe havens have not been spared. Gold slid more than 4 percent on Thursday to roughly $4,720 an ounce, while silver suffered an even steeper fall, tumbling as much as 18.5 percent to around $69.