Bitcoin Slides Over 6% To $66,000 As Risk-Off Sentiment Hits Crypto Markets

Bitcoin continued to fall on Friday, losing over 6 per cent to trade around $66,198, as worsening global sentiment dampened appetite for riskier assets.

A combination of technology stock weakness, large-scale liquidations, and concerns about tighter monetary policy in the United States weighed heavily on the cryptocurrency market.

A day earlier, Bitcoin suffered its steepest one-day fall since late 2024, tumbling 12.6 per cent to about $63,300. The drop pushed the digital asset to its lowest level since October 2024 and wiped out billions of dollars in market capitalisation, according to several reports.

Market analysts said investors globally reduced exposure to high-risk assets, triggering sharp declines across cryptocurrencies.

Volatility from technology shares and even precious metals spilt over into digital assets, deepening losses across the sector.

Crypto market data showed that leveraged positions worth close to $1 billion were liquidated within 24 hours. These forced sell-offs accelerated declines across the broader market.

Bitcoin has now shed 20.22 per cent over the past week. It is down nearly 29 per cent over the last month. The cryptocurrency has fallen more than 32 per cent over the past year.

Ether, the second-largest cryptocurrency by market value, also faced heavy selling pressure.

The token plunged more than 13 per cent in a single session and has fallen close to 38 per cent so far in 2026.

Investor confidence weakened further after US President Donald Trump nominated Kevin Warsh as his choice for Federal Reserve chair.

Market participants fear that a more hawkish central bank could reduce liquidity by shrinking the Fed’s balance sheet. Such liquidity has previously supported risk assets, including cryptocurrencies.

Additional pressure came from institutional investors. Persistent outflows from institutional exchange-traded products, including more than $3 billion withdrawn from US spot Bitcoin ETFs in January, continued to weigh on prices.

Observers noted that Bitcoin has closely tracked movements in technology stocks. This has been especially evident in software and AI-related shares. Sharp declines in these segments have intensified selling pressure.

Analysts also warned that prolonged weakness could force crypto miners into liquidation as falling prices strain their cash flows.

Despite the current downturn, Bitcoin’s long-term significance remains intact.

The US decision in 2025 to establish a Strategic Bitcoin Reserve underlined the growing role of digital assets within national and traditional financial frameworks.