Bitcoin Slides Sharply, Extending Weekly Losses Amid Global Risk Aversion

The cryptocurrency market is experiencing one of its most turbulent periods in recent months, as Bitcoin posts a steep decline and breaks below levels previously viewed as key psychological support for investors. The world’s largest digital asset began trading below the US$70,000 range early in the session, and selling pressure intensified throughout the day, deepening losses and reinforcing the broader wave of risk aversion affecting global financial markets.

By late afternoon trading, Bitcoin hovered near the US$65,000 mark, recording a significant daily drop and accumulating weekly losses exceeding 20%. The sharp correction has drawn the attention of analysts and investors, particularly because it unfolds in an environment of tighter global liquidity — a condition historically associated with heightened volatility in high-risk assets such as cryptocurrencies and growth-oriented equities.

The downturn was not limited to Bitcoin. Ethereum, the second-largest cryptocurrency by market value, also posted substantial losses, mirroring the negative trend across the digital-asset sector and strengthening the view that the current adjustment is part of a broader capital reallocation rather than an isolated event. Institutional investors and global funds, according to market observers, have been reducing exposure to volatile assets amid ongoing economic uncertainty and a decline in speculative liquidity.

Another factor weighing on cryptocurrencies is their increasing correlation with traditional financial markets. In recent years, Bitcoin has become more sensitive to the same macroeconomic forces that influence equities and other investment instruments, including monetary conditions, expectations of higher interest rates, and shifts in global investor confidence. When risk appetite declines, digital assets are often among the first to experience accelerated sell-offs.

Despite the sharp pullback, analysts emphasize that periods of intense correction are not unusual in the historical trajectory of the crypto market, which has long been characterized by pronounced cycles of expansion and contraction. Long-term investors generally view volatility as an inherent feature of the asset class, while short-term traders closely monitor key technical levels to identify potential recovery signals or the possibility of further downside pressure.

Market performance in the coming sessions will likely depend largely on global macroeconomic conditions and capital flows into risk-oriented investments. If liquidity remains constrained and uncertainty persists, specialists expect volatility to stay elevated, keeping cryptocurrencies in a phase of adjustment and price revaluation as investors await clearer signs of financial stabilization worldwide.