Bitcoin crashes to 2023 lows as panic selling triggers market chaos
Bitcoin has suffered a sharp decline this week, with prices dropping to their lowest point since late 2023. Analysts have labelled the trading period as disastrous for cryptocurrencies, as panic selling pushed values down before a slight rebound began. Investors now face warnings of deeper instability, particularly as markets head into the weekend.
The downturn accelerated when leveraged buy positions were liquidated in rapid succession. Bitcoin's value plummeted to $60,256, its lowest in months, before climbing back to $66,411 by Friday morning. The overnight drop neared $60,000, sparking comparisons to past crashes, such as the 2022 bear market when prices fell to between $15,000 and $20,000 before recovering amid volatility.
Fears over rising interest rates and potential liquidity shortages have added pressure to the market. Prominent investor Michael Burry drew parallels to the 2022 slump, warning of a possible 'death spiral' for Bitcoin. Analyst Timo Emden described the week as a 'horror' for digital assets, with risks of contagion spreading to broader financial markets.
Bitcoin's brief recovery follows a steep sell-off, but concerns remain over weekend trading. Investors have been urged to brace for further turbulence as uncertainty lingers. The potential for wider financial contagion adds to the unease surrounding cryptocurrency markets.
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