Can a 14% weekly drop in Bitcoin reset expectations for 2025?

• Bitcoin climbs back above $65,000 after touching a low near $60,000, but is still set for its worst week since November 2022
• Global crypto market value has fallen by about $2 trillion since early October, with over $1 trillion lost in the last month
• U.S. spot Bitcoin ETFs record combined outflows of more than $12 billion across November, December and January

Bitcoin climbed back above $65,000 on Friday, recovering part of its recent losses as the rout in global technology shares appeared to ease. The move came at the end of a bruising week for cryptocurrencies, which have been under sustained pressure since a record downturn in October pushed Bitcoin off its all-time high and dampened appetite for digital assets. Despite the latest rebound, the token remained on track for its steepest weekly slide in nearly two years, underscoring how closely it is now trading in tandem with broader risk markets.

Bitcoin price swings amid tech stock turmoil

By late Friday, Bitcoin was trading 4.4% higher at $65,894.20, having earlier fallen as much as 5% to a session low of $60,008.52. Even with the intraday recovery, the cryptocurrency was still down almost 14% for the week, its biggest weekly drop since November 2022. The current price level leaves it hovering near its weakest point since early October 2024, just before a strong rally accelerated as Donald Trump moved closer to winning the U.S. presidential election and highlighted his support for crypto during the campaign.

Market participants pointed to the broader shakeout in crowded trades as investors exited risk assets at speed. Chris Weston, head of research at Pepperstone in Melbourne, noted that Bitcoin has been declining since October 2025 and raised the question of whether its earlier weakness signalled trouble ahead for other markets or was merely coincidental. He added that heavily owned positions across asset classes were being unwound rapidly, contributing to the sharp price moves.

The latest rebound in Bitcoin coincided with tentative signs that the rout in global technology stocks, which had erased many speculative bets, was slowing. For months, the cryptocurrency has shown a strong correlation with the tech sector, often advancing alongside enthusiasm for artificial intelligence and other high-growth themes. As tech valuations came under pressure, bitcoin also retreated, reflecting its role in portfolios as a proxy for higher-risk, growth-oriented exposure rather than as an isolated asset.

Wider crypto losses and the role of risk management

The broader digital asset market has seen a significant erosion of value. According to CoinGecko data, the global crypto market capitalisation has fallen by about $2 trillion since reaching a peak of $4.379 trillion in early October. More than $1 trillion of that has been wiped out over the past month alone, highlighting the speed and intensity of the downturn.

Ether followed a similar pattern to Bitcoin in Friday’s session. The second-largest cryptocurrency was last up 4% at $1,921 after dropping earlier toward a near 10-month low of $1,751.94. It was heading for a weekly loss of almost 16% and was down 35% so far this year, indicating even sharper underperformance than Bitcoin over that period.

Sentiment toward cryptocurrencies has also been influenced by turbulence in other markets. Selling in precious metals and equities has contributed to a more cautious tone, with gold and silver experiencing heightened volatility. That instability has been linked to leveraged positioning and speculative flows, mirroring some of the dynamics observed in digital assets.

Joshua Chu, co-chair of the Hong Kong Web3 Association, argued that Bitcoin’s slide back toward the $60,000 area should not be interpreted as the end of crypto but rather as a reckoning for investors and institutions that treated it as a one-directional trade. He compared the recent correction to sharp pullbacks in assets often described as safe havens, such as gold and silver, when leverage and narrative outpaced underlying fundamentals. Chu said that participants who took on excessive risk, borrowed heavily, or assumed that prices would continue to rise are now confronting the realities of market volatility and the need for robust risk management.

ETF outflows and questions over Bitcoin rebound

Flows into and out of U.S. spot Bitcoin exchange-traded funds have added another layer to the picture. Analysts at Deutsche Bank reported that these products saw more than $3 billion in outflows in January. That came after outflows of about $2 billion in December and $7 billion in November, indicating sustained selling pressure from ETF investors over several months.

These withdrawals have coincided with a difficult period for global stocks, particularly for sectors tied to growth and technology. Kathleen Brooks, research director at XTB, observed that February has so far been unfavourable for equity bulls. She said it remains to be seen whether Bitcoin’s move back above $65,000 signals the start of a more durable recovery or is simply a temporary bounce within a broader downtrend.

The link between Bitcoin and other risk assets has been evident in the way the cryptocurrency has tracked shifts in market mood. When optimism over artificial intelligence and technology earnings helped lift equities, Bitcoin often benefited from the same momentum. As that enthusiasm cooled and investors trimmed exposure to speculative trades, the cryptocurrency faced parallel selling pressure. The latest uptick therefore leaves open the question of whether stabilisation in tech stocks can anchor a more lasting turnaround in digital assets, or whether further unwinding of leveraged positions will keep prices under strain.

Conclusion

Bitcoin’s rise back above $65,000 on Friday offered some relief after a week marked by sharp declines, yet the broader backdrop for cryptocurrencies remains challenging. The token is still on course for its heaviest weekly loss since late 2022, and the global crypto market has shed trillions in value from its early October peak. Ether’s deeper year-to-date slide, the volatility in precious metals, and continued outflows from U.S. spot Bitcoin ETFs all point to a market in retrenchment rather than expansion. With Bitcoin closely tied to swings in technology stocks and risk sentiment more generally, investors are now weighing whether the latest rebound represents the first step in a sustained recovery or a brief pause in a larger adjustment driven by leverage, positioning, and shifting expectations across asset classes.

Disclaimer

The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.

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