Bitcoin fell to $60.000 amid a correction fueled by $1.400 billion in liquidations and a 92% correlation with the S&P 500. Experts predict that volatility will continue in the short term.
The price of Bitcoin has registered a correction of 12,22% in the last 24 hours, which placed its price on the border of $60.000Its lowest level since September 2024. Although the cryptocurrency has slightly recovered its value in recent hours, its recent drop rattled markets and triggered a wave of liquidations exceeding $1.400 billion in highly leveraged long positions.
This new corrective move occurred in sync with a sharp pullback in traditional equity markets, especially in US technology stocks. With a 92% correlation with the S&P 500 indexThe behavior of the market's leading cryptocurrency reflects a sell-off driven by global macroeconomic factors and a marked risk aversion on the part of institutional and retail investors, who are reducing their exposure to the current financial instability.
Bitcoin trading on key support levels: enter hereA long squeeze shook Bitcoin and the crypto market
The recent drop in the price of Bitcoin was triggered by a long squeeze far-reaching. In the preceding weeks, widespread enthusiasm in the market had led many traders to take highly leveraged buy positions. When the price of BTC began to pull back, those positions started to reach their limits. automatic settlementThe result has been a wave of forced selling that amplified the downward pressure and deepened Bitcoin's downward movement.
In just one day, Bitcoin liquidations skyrocketed by 351%, with around 90% of the closed orders corresponding to long positions.
Source: coinglass
The surge in Bitcoin trading volume, which grew by 91% during the liquidation process, confirms that this was not a minor correction, but a chain reaction fueled by the market overexposure.
However, analysts point out that funding rates have turned negative, a sign that the excess leverage that had been supporting prices was finally drained from the ecosystem. Ethereum was also caught up in this wave of sell-offs and fell back to around $1.770 per unit, levels not seen since April 2025, wiping out much of the gains accumulated over the past year.
The massive market sell-off has driven the Fear and Greed Index to levels of extreme panicUnlike other periods of volatility, this time the market did not find immediate support due to the magnitude of the forced selling on major global platforms. The current trend structure remains bearish, with Bitcoin's price trading below its most important moving averages, indicating that the immediate selling pressure has exceeded the capacity of buyers to absorb it.
The price of Bitcoin and Wall Street are cooling down at the same rate
Bitcoin's decline has unfolded in parallel with the slowdown in the technology sector. The financial environment has become more cautious, and investors are showing clear signs of exhaustion in the face of uncertainty surrounding the Federal Reserve's monetary policy and inflation data that continues to surprise on the upside. Far from acting as a safe haven against short-term risk, Bitcoin has accurately reflected market tensions. Its correlation with the S&P 500 confirms this. a thermometer of risk appetite within a global context conditioned by the tightening of financial conditions.
Major banks and analysis firms, including Deutsche Bank, agree that the loss of confidence in digital assets does not stem from a single event, but from a constant erosion of expectations.
In the case of Bitcoin exchange-traded funds in the United States, capital outflows have been sustained since the end of 2025. In January of this year alone, redemptions exceeded $3.000 billion, a figure that reduces the liquidity needed to stabilize prices during periods of high volatility. With less money circulating in the ecosystem, even moderate selling pressure can trigger abrupt swings in a matter of hours.
Source: Soso Value
However, the loss of traction isn't limited to the crypto ecosystem. Technology stocks have also seen significant declines, and the correlation between the two markets has amplified these drops. Investors who previously balanced their portfolios between technology and crypto have now opted to reduce their exposure overall. This is compounded by a weakening in retail adoption. Lower public participation and the withdrawal of institutional capital create a scenario where enthusiasm gives way to caution, marking a period of adjustment in the global risk narrative.
Create your account and trade BTC todayThe leading crypto is caught between oversold conditions and recovery.
Despite the severity of the current price correction, experts remain divided on the immediate future. Technical indicators, such as the 14-period Relative Strength Index (RSI), are currently at 22,8, a zone that historically signals extremely oversold conditions. This suggests that, after the forced sell-off subsides, a short-term technical rebound could occur if Bitcoin's price manages to stabilize above the psychological support level of $60.000.
From a more structural perspective, analysts from firms like Goldman Sachs and independent strategists agree that the market is undergoing a necessary cleansing phase after months of excessive speculation. Several of them estimate that the price correction could continue throughout the current quarter, with the risk that Bitcoin could test retracement levels near $57.300 if selling pressure breaks through the current support.
Even so, most maintain a constructive medium-term outlook. Once the macroeconomic landscape stabilizes and the monetary policies of major central banks become clearer, the price of BTC could resume its upward trend toward the end of the year.
Source: CoinGecko
Experts' expectations for 2026
Although the short term shows signs of caution and some downward pressure, many analysts still maintain a constructive outlook on the cryptocurrency's performance in the second half of the year. Bitcoin's history of resilience in previous cycles remains a point of support for those confident in its gradual recovery.
The crypto market continues to mature, facing external factors that test its resilience. How this period of volatility unfolds will be key in determining whether Bitcoin can once again decouple from the dynamics of traditional markets and solidify its position as an asset with its own intrinsic value and independent narrative.
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