Bitcoin’s Quick Bounce Back After Market Sell‑Off

Bitcoin climbed from a low near $60, 000 to about $69, 000 this week, undoing the gains it had made after Donald Trump’s November 2024 election. \p The drop came during a broader sell‑off that saw the CoinDesk 20 index fall more than 17% in one week. Bitcoin lost roughly 16. 5%, while Ether, BNB and Solana fell 22–25%. Shares of crypto‑linked companies also slipped, even after a brief rebound when Bitcoin briefly hit $70, 000. \p A sharp fall the day before was described by Wintermute as the biggest single‑day loss since the FTX collapse. Market liquidations and a “sell at any price” dynamic pushed prices lower, according to Jasper De Maere of Wintermute. Institutional traders reported only modest liquidations, which does not fully explain the size of the move. \pThe slump coincided with a broader market pullback. The Nasdaq 100 tracker dropped about 5% over three days, and precious metals fell 38% for silver and 12% for gold. In crypto options, volatility spiked to the 99th percentile, with put options becoming more expensive. \p Gemini announced it will close operations in the U. K. , EU and Australia, cutting 25% of staff. The exchange will switch to withdrawal‑only mode in those regions and partner with eToro for asset transfers. Meanwhile, Bitfarms’ shares rose after shifting focus from Bitcoin to AI infrastructure. \p Bitcoin’s market depth has shrunk, meaning price moves can be sharper. Spot Bitcoin ETFs have seen net outflows of about $1. 25 billion in three days, leaving holders with large unrealized losses. Analysts note that Bitcoin’s recent decline mirrors the behavior of software stocks, which fell after new AI tools were released. \p