Bitcoin has fallen to its lowest level in 21 months, slipping below the critical $60,000 support threshold that had held for nearly two years.
The digital asset traded as low as $57,742 during Asian session hours on Wednesday, marking a significant breach of technical support levels that have underpinned the market since late 2024.
The breakdown below $60,000 is notable given the level's historical significance as a psychological and technical floor.
The sharp decline reflects a broadening loss of confidence among investors, driven by a combination of macroeconomic headwinds.
Persistent inflationary pressures, exacerbated by high energy prices, are fueling speculation that the US Federal Reserve may need to raise interest rates rather than cut them.
This shift in monetary policy expectations has weighed heavily on risk assets, with Bitcoin facing particular selling pressure as a high-beta asset sensitive to liquidity conditions.
The breakdown below $60,000 is notable given the level's historical significance as a psychological and technical floor.