Bitcoin Falls Below $60K in Worst Weekly Decline Since FTX Collapse

The Quick Take

• Bitcoin dropped below $60,000, marking its worst weekly performance since the FTX exchange collapse in November 2022.
• The token reached its lowest level since October 2024, breaching a key psychological support level that traders watch closely.
• Analysts warn the FTX-scale weekly loss may precede additional pain as speculative positions continue to unwind across the crypto market.

Bitcoin's drop below $60,000 during its worst week since the November 2022 FTX collapse represents a significant technical and psychological breach for the world's largest cryptocurrency. The FTX crash in 2022 wiped out roughly 75% of Bitcoin's value from its prior peak, and comparisons to that period heighten investor anxiety about contagion risks across crypto lending, staking, and derivatives platforms that have rebuilt leverage since the sector's partial recovery. The reversal from Bitcoin's 2025 highs above $100,000 represents a correction of historic magnitude, reaching the lowest price level since October 2024 and erasing roughly a year of gains in what appears to be an accelerating downtrend rather than a standard consolidation pullback.

Crypto-exposed equities including Coinbase, MicroStrategy, and Bitcoin miner stocks MARA and RIOT face pronounced downside risk as Bitcoin tests key technical support levels that institutional holders use as stop-loss thresholds. Singapore's crypto trading ecosystem, which hosts significant regional liquidity through MAS-licensed exchanges, faces volume contraction and potential margin call cascades as leveraged positions approach liquidation thresholds. Stablecoin redemption pressures are worth monitoring given their systemic role as crypto market liquidity infrastructure, since rapid stablecoin outflows can accelerate Bitcoin selling by reducing the pool of available buying capital across exchanges.

The critical technical level to watch is the $55,000 to $57,000 range representing the 200-week moving average historically associated with Bitcoin bear-market bottoms and major accumulation zones. On-chain signals including miner hash rate, long-term holder supply changes, and exchange inflow-to-outflow ratios will indicate whether capitulation is approaching completion or has further to run. The macro variable is the US Federal Reserve's June FOMC decision: a hawkish surprise emphasizing rates staying higher for longer would likely accelerate the Bitcoin selloff by compressing global risk appetite across speculative asset classes that have benefited from low-rate liquidity conditions.

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