Bitcoin Recovers from 16-Month Low as Market Volatility Shows Signs of Easing

Bitcoin bounced from a 16-month low on Friday after testing the key $60,000 level, as a global sell-off in technology stocks that had shaken risky assets began to show tentative signs of easing.

The world’s largest cryptocurrency, BTC, was last up 3.3 percent at $65,198.20, recovering from an earlier drop of 5 percent that took it to $60,008.52. Despite the rebound, bitcoin remains near its lowest level since October 2024, a month before Donald Trump won the US presidential election after signalling support for cryptocurrencies on the campaign trail.

“Bitcoin‘s been going down since October 2025,” said Chris Weston, head of research at brokerage Pepperstone in Melbourne. “Maybe you could ask if it was the canary in the coalmine, or a coincidence. A lot of these big crowded positions are being unwound very, very quickly.”

Ether also saw a recovery, rising nearly 4 percent to $1,919.37 after earlier falling close to a 10-month low of $1,751.94. The broader crypto market has lost roughly $2 trillion in value since peaking at $4.379 trillion in early October, with over $1 trillion wiped out in the past month alone, according to CoinGecko data.

Bitcoin was on track to fall 15 percent for the week, bringing its year-to-date losses to 26 percent, while ether faced a weekly decline of 16 percent and a year-to-date drop of nearly 36 percent.

The cryptocurrency rout has been influenced by volatility in global markets, particularly in technology stocks and precious metals. Gold and silver, which had seen sharp swings due to leveraged buying and speculative flows, also experienced some retracement on Friday as selling pressure eased.

“Bitcoin drifting back toward $60,000 is not crypto dying,” said Joshua Chu, co-chair of the Hong Kong Web3 Association. “It is the bill coming due for Treasuries and funds that treated bitcoin as a one-way asset without real risk controls, just as we have seen sharp corrections in self-proclaimed safe-haven assets like gold and silver when leverage and narrative ran ahead of reality. Those who bet too big, borrowed too much or assumed prices only go up are now finding out the hard way what real market volatility and risk management look like.”

Cryptocurrencies have struggled for months following a record crash last October, which sent bitcoin tumbling from a peak. Investor sentiment has cooled as a result, and outflows from US spot bitcoin ETFs have accelerated. Deutsche Bank analysts reported that ETFs saw outflows exceeding $3 billion in January, following outflows of about $2 billion in December and $7 billion in November.

Market watchers say bitcoin’s recovery may remain fragile, dependent on broader equity and technology trends. The rebound demonstrates that while the digital asset remains highly volatile, it continues to attract interest from investors seeking exposure to high-risk, high-reward markets.