The price of Bitcoin slid sharply on Friday, dropping to a nine-month low as a broad risk-off move swept through global markets. A tech-led equity selloff, political uncertainty in Washington, and a wave of forced liquidations combined to sap investor confidence, dragging crypto prices lower across the board.
Bitcoin sinks to nine-month low
Bitcoin fell nearly 8% during Asian trading hours, bottoming out around $81,314, its lowest level since mid-April. The weakness quickly spilled into the wider crypto market.
Ethereum dropped more than 7% to a 10-week low near $2,700, while other major tokens including BNB, XRP, Solana, and Cardano—posted losses in the 5%–7% range.
As prices fell, the total crypto market capitalization slid nearly 6% to $2.9 trillion, marking one of the sharpest single-day declines since the October liquidation event tied to U.S.–China trade tensions.
Market sentiment deteriorated rapidly. The Crypto Fear & Greed Index plunged 10 points to 16, its lowest reading since Dec. 20, signaling deep fear among investors.
Bitcoin mirrors tech stock weakness
Bitcoin’s decline closely tracked a sharp selloff in U.S. equities, particularly technology stocks. Microsoft shares plunged more than 12% after its latest earnings report raised concerns about slowing cloud growth and surging AI-related costs.
The drop marked Microsoft’s worst single-day performance since March 2020 and weighed heavily on broader stock indices. As equities sold off, traders reduced exposure to other risk assets including crypto.
Government shutdown fears return
Political uncertainty in Washington also added pressure. Lawmakers failed to pass a spending package on Thursday, raising the risk of another U.S. government shutdown if legislation is not approved before the weekend.
Traders appear to be recalling the last major shutdown, which began in October and lasted 43 days. During that period, Bitcoin fell nearly 15%, reinforcing fears that a prolonged shutdown could trigger another extended drawdown. Based on similar moves, some analysts warn BTC could slide toward the $70,000 area if history repeats.
Policy shifts and geopolitical tensions
Policy developments further rattled markets. U.S. President Donald Trump announced plans to overhaul leadership at the Federal Reserve, with markets expecting the nomination of Kevin Warsh, a known critic of loose monetary policy.
At the same time, Trump signed a national emergency executive order targeting nations supplying oil to Cuba. Renewed tensions in the Middle East added another layer of uncertainty, reinforcing a defensive tone across global markets.
Liquidations accelerate the selloff
Leverage amplified the downturn. Data from CoinGlass shows that $1.68 billion in leveraged crypto positions were liquidated over the past 24 hours, with $1.56 billion coming from long positions.
Bitcoin alone accounted for about $745 million of the bullish bets wiped out. Large liquidation events like this tend to intensify selling pressure, as forced exits cascade through the market and damage short-term confidence.
ETF outflows remove key support
Adding to the pressure, U.S.-listed spot Bitcoin ETFs recorded $817.8 million in net outflows on Thursday, extending their outflow streak to three consecutive days. The withdrawals removed an important source of demand that had supported Bitcoin prices through late 2025.
Where Bitcoin stands now
At the time of writing, Bitcoin has managed a modest rebound from its lows, trading near $82,800. Still, the broader setup remains fragile, with price action closely tied to macro developments, policy headlines, and risk sentiment in equities.
For now, Bitcoin’s slide appears less about crypto-specific issues and more about its role as a high-beta risk asset in a market grappling with uncertainty on multiple fronts.
