Bitcoin staged a volatile rebound in Asian trading on Friday after a brutal selloff dragged the world’s largest cryptocurrency to $60,033, marking a decline of more than 50% from its October all-time high above $126,000.

According to Bloomberg data, the token fell as much as 4.8% in morning trade before recovering sharply to $65,926. As of 10:28 a.m. Singapore time, Bitcoin was changing hands at $64,420, reflecting extreme intraday swings that underline the fragile state of crypto market sentiment.

The broader crypto market experienced similar turbulence. Solana, for instance, dropped as much as 14% before erasing losses within hours. Such sharp reversals point not to fresh buying conviction but to the mechanics of leveraged positions being forcibly unwound.

This episode follows a severe wave of liquidations that began in October and has steadily eroded confidence in digital assets. The current week has intensified the trend, with Bitcoin plunging over 13% on Thursday alone-its worst single-day drop since November 2022, when the collapse of FTX rattled global crypto markets.

Data from CoinGlass shows that more than $2.3 billion worth of bullish crypto bets were liquidated in just 24 hours. This scale of forced selling highlights how leverage, rather than fundamental triggers, is driving price action.

Market participants in Asia describe the situation as “sharp selling in thin liquidity.” Damien Loh, Chief Investment Officer at Ericsenz Capital, noted that while the bounce from $60,000 indicates strong support at that level, traders should not expect a swift recovery given the cautious mood.

Rachael Lucas, analyst at BTC Markets, echoed this view, warning that failure to hold the $60,000 mark could push Bitcoin into the mid-$50,000 range. According to her, repeated breaches of support levels have altered trader behavior, with fewer participants willing to step in amid liquidation-led volatility.

The pressure is also being felt by large institutional holders. In its latest earnings release, Strategy Inc., led by Michael Saylor and known for its substantial Bitcoin holdings, reported a net loss of $12.4 billion for the fourth quarter due to mark-to-market declines in its crypto assets. This underscores how corporate exposure to Bitcoin amplifies balance sheet risks during sharp corrections.

What makes this episode noteworthy is not just the magnitude of the fall, but the speed at which confidence has deteriorated from October’s euphoric highs. The retreat to nearly half of peak value in a matter of weeks shows how quickly leveraged enthusiasm can unwind in unregulated asset classes.

The $60,000 level is emerging as a psychological pivot. A sustained hold above this mark may encourage gradual accumulation by long-term holders. A breach, however, could trigger another round of algorithmic selling and margin calls.

Unlike past cycles where retail enthusiasm drove rallies, this phase is dominated by institutional, derivative-driven positioning. As leverage gets flushed out, price discovery becomes disorderly, leading to extreme intraday swings.