Bitcoin plummeted to a nine-month low on Friday as a global tech-driven selloff eroded investor appetite for risk. The downturn rippled through multiple sectors, dragging down cryptocurrencies, equities, and precious metals in a broad market retreat.
According to data from crypto.news, Bitcoin (BTC) price fell by nearly 8% to $81,314 on Friday morning Asian time, its lowest level since April 12.
Following the bellwether, Ethereum (ETH) price fell over 7% to a 10-week low of around $2,700 on the day. Other large-cap altcoins, such as BNB (BNB), XRP (XRP), Solana (SOL), and Cardano (ADA), were also in the red, posting losses ranging between 5-7%.
Likewise, the total crypto market cap had dropped nearly 6% over the past day at $2.9 trillion, marking the steepest single-day declines since the Oct. 10 liquidation event that was triggered by an escalation of the trade war between the U.S. and China, which led to around $500 billion wiped out on the day.
The Crypto Fear and Greed index reading fell by 10 points to 16 today, its lowest since Dec. 20.
Bitcoin’s weakness today follows a significant decline in U.S. equities, where tech stocks led losses following weaker earnings. Notably, Microsoft shares slid more than 12%, marking its worst single-day performance since March 2020 and weighing heavily on indices.
Traders have also likely entered a wait-and-watch mode, cutting their exposure to risk assets as they brace for another potential U.S. government shutdown. The risks of such a disruptive move arise from the fact that U.S. lawmakers failed to pass a spending package on Thursday. Should the legislation fail to pass before the weekend, there is a high chance of another government shutdown.
Traders are likely recalling how a similar 43-day shutdown that began in October led to a nearly 15% drop in Bitcoin price within that period. Taking into account the Bitcoin price when it began the latest drop, it could put Bitcoin down to around $70K.
Policy changes in the U.S. government also played a key role in Bitcoin’s correction today. Notably, President Trump has announced that he would repeal the next Fed Chair nominee today, which the market expects to be Kevin Warsh, a long-term critic of current monetary policy.
The U.S. President’s national emergency executive order on Thursday targeting nations supplying oil to Cuba also added to the headwinds. Renewed tensions in the Middle East further added to the tensions.
Data from CoinGlass shows that over the past 24 hours, $1.68 billion worth of leveraged crypto positions were liquidated, with $1.56 billion coming from long positions alone. Bitcoin accounted for $745 million of the bullish bets being liquidated.
Largest liquidation events such as these tend to exacerbate a negative outlook for price and impact investor sentiment, who often turn away from volatile assets, fearing further downturn.
At the same time, U.S.-listed spot exchange-traded funds have posted $817.8 million in net outflows yesterday, extending the outflow streak to three consecutive days and removing a key source of demand that supported prices through late 2025.
At the time of writing, Bitcoin managed to retrace from some of its losses and settled at $82,808.
