Bitcoin Price Drops $60,000 in Major Crypto Market Selloff

Bitcoin fell below the $60,000 mark on Wednesday, dropping 5% amid a broader selloff in high-risk assets. The world's largest cryptocurrency traded at $59,374 by late afternoon pushing its monthly losses to 22.4% and wiping out its gains for the year.

The sudden drop triggered a wider crypto market pullback. The total global cryptocurrency market capitalization declined by 4% in 24 hours falling to $2.06 trillion. Ethereum, the second-largest digital asset, mirrored Bitcoin's slide dropping 5.4% to $1,567 while most major altcoins suffered similar losses.

Market analysts attribute the decline to investors reducing their exposure to speculative investments. A recent downturn in US technology and artificial intelligence stocks combined with uncertainty over the US Federal Reserve’s upcoming interest rate decisions has driven traders toward cash and lower-risk assets.

Despite easing global inflation fears following the recent US-Iran interim peace agreement the cryptocurrency sector failed to attract safe-haven investments. Instead, Bitcoin's daily trading volume surged by 17.4% to $35.5 billion signaling intense selling pressure and heightened short-term market volatility.