Bitcoin Sinks to 20-Month Low as Crypto Market Continues Free Fall

Bitcoin plummeted to its lowest price in over 20 months on Wednesday as major cryptocurrencies continued their downward spiral. The apex cryptocurrency fell below $60,000 for the first time since October 24, with a 40% surge in trading volume over the last 24 hours.

The drop in Bitcoin's value is not isolated to the cryptocurrency market alone. Stocks also extended their slide on Wednesday, with the S&P 500 falling 0.10% and the Nasdaq Composite dipping 0.43%. However, the Dow Jones Industrial Average bucked the trend, rallying 182.06 points.

The crypto market capitalization stood at $2.09 trillion, representing a 2.74% decline over the last 24 hours. Nearly $1 billion was liquidated from the cryptocurrency market in the last 24 hours, with $800 million in bullish long positions wiped out, according to Coinglass data.

Analyst Rekt Capital warned that Bitcoin's daily close below the $60,000 level and a subsequent bearish retest could confirm further downside. On-chain analytics firm CryptoQuant highlighted that Bitcoin's drop below $60,000 triggered a 'new wave of panic' among some investors, prompting them to move their BTC back to exchanges.