Bitcoin slid below $60,000 on Friday for the first time since before the US presidential elections in November 2024, dipping as low as $59,000 before recovering to around $63,000 by press time. The drop came as Iran struck Israel in retaliation for attacks against Lebanon, sending shockwaves through risk assets. President Donald Trump condemned the strikes but signaled a potential peace deal could be announced within days.
The drop to $59,000
Friday's low was the latest leg of a correction that began in mid-May, when Bitcoin got rejected at $82,000. The move below the psychologically important $60,000 mark wiped out gains that had held since the election rally. The bounce from $59,000 to $64,200 was sharp — roughly 8% in a few hours — but the asset still sits well below its recent highs.
Geopolitical spark
The immediate trigger was Iran's strike on Israel, which spooked traders already on edge after weeks of selling. Trump's quick condemnation and his mention of a possible peace deal within days helped calm some nerves, but the damage was done. Bitcoin tends to react badly to sudden geopolitical shocks, and Friday was no exception. The timing isn't great — the correction was already underway, and this gave sellers another reason to push.
Liquidations mount
Total cryptocurrency liquidations exceeded $600 million in a single day, with $467 million of that coming from short positions. That suggests many traders were betting on further downside and got caught off guard by the snapback. It's a reminder that even in a downtrend, the volatility cuts both ways.
What one analyst sees ahead
Analyst Merlijn The Trader, citing the 2022 bear market pattern, predicted Bitcoin would bounce toward $65,000–$70,000 before a final capitulation leg down to a DCA zone between $48,000 and $59,000. In 2022, a similar rebound preceded actual capitulation. Whether history repeats remains to be seen, but the next few days — with Trump's possible peace deal announcement — could set the tone.
