Bitcoin has been on a wild rollercoaster lately, crashing hard from over $127,000 last October down to around $60,000-$61,000 just this week. A significant drop of about 50% that wiped out trillions in crypto value.

It peaked above $127,000 in late 2025, slipped to $90,000 by year-end, broke under $80,000 in January, then tanked below $70,000 and even $61,000 by early February. That left it down over 28% this year so far, with some weeks losing 17%. Though it bounced back above $70,000 briefly yesterday, the swings keep coming.

A bunch of things piled up to send Bitcoin into this free fall, turning it from a hot investment to something everyone's dumping.

Big funds pulling money out of Bitcoin ETFs of about $3 billion last month alone after even more late last year. It simply shows regular investors are losing interest.

The Federal Reserve isn't cutting rates like hoped but instead, President Trump's pick of a tough-on-money Kevin Warsh as new Fed boss has everyone betting on stricter rules that hurt risky stuff like crypto.

The whole market's getting scared. Tech stocks and hype around AI are slumping too, plus worries about wars, rising prices in the US, and a possible stock bubble bursting.

Too much borrowed money got wiped out in sales, and Bitcoin miners are dumping their coins to pay bills or switch to other businesses like AI.

Bigger picture stuff like no real safe-haven appeal (gold's doing better), money flows reversing from cheap loans, and high energy costs are making it worse.

Bitcoin moves way faster than stocks, sometimes two or three times more wildly. That is because of all the bets on borrowed cash and not enough buyers when panic hits.

Right now, fear is sky-high, and daily ups and downs are over 6%, but some folks think this shakeout weeds out the nervous sellers for a stronger comeback later. 

Watch out though. Without good news, it could dip under $60,000.