Bitcoin plummets to $59,073 for the first time since October 2024! What are analysts saying about the 16 percent weekly loss?

The world’s largest cryptocurrency by market capitalization, Bitcoin, experienced a steep selloff on the final trading day of the week, plunging to its lowest point since October 2024. As of Friday, the price retraced as far as $59,073, sliding beneath the previous low reached in February, when it tested the $60,062 mark.Rising US labor data intensifies pressureThis cycle witnesses steepest demand contractionAnalysts draw parallels with previous bear cycles Rising US labor data intensifies pressureThe main catalyst behind the sharp decline was robust US employment data released on Friday. Afterward, markets factored in the likelihood that interest rates would remain elevated for a longer period. This sentiment drove US Treasury yields and the dollar index higher, exerting pressure across risk assets, including equities and the cryptocurrency market.In the aftermath of Friday’s sharp correction, Bitcoin stabilized around the $61,000 level in Saturday’s Asian trading session. The flagship crypto remained roughly 1.3 percent in the red on the day and booked a significant weekly loss of 16 percent. Ongoing outflows from Bitcoin ETFs throughout the week added to the bearish mood and exacerbated downward price movement.This cycle witnesses steepest demand contractionJulio Moreno, head of research at on-chain analytics provider CryptoQuant, characterized the latest correction as “a new cycle low that signals a bear market for Bitcoin.” In his analysis, Moreno argued that the current pullback marks the most severe contraction of this market cycle. Julio Moreno, at the helm of CryptoQuant’s research division, commented that the recent price action corresponds to the steepest contraction seen in this cycle and has established a new bear market low.CryptoQuant’s data revealed that global Bitcoin demand has dipped to its weakest point since this cycle began after the previous bear market. Aggregate demand fell by 501,000 BTC, the deepest contraction observed so far in this period. The data also pointed out that the speed of this demand drop mirrors the rapid retreat seen in the aftermath of the Terra and Luna crash.Glossary: On-chain data refers to indicators derived from activity and balances on the blockchain. Spot demand reflects direct buying interest, whereas futures demand measures position-taking in derivatives markets.According to the same dataset, total Bitcoin demand, which includes both speculative and spot transactions, shrank by 501,000 BTC over the past month. This marks the fastest monthly drop since May 22, 2022. Spot demand alone fell by 272,000 BTC on a rolling 30-day basis, while futures-driven demand dropped by 229,000 BTC during the same timeframe.Analysts draw parallels with previous bear cyclesAnalysts observed that similar patterns emerged in November 2023 and again in April 2025, with market participants now focusing intently on this latest period of waning interest. Historically, such phases of low demand and muted investor engagement have sometimes preceded shifts in market direction.CryptoQuant’s data shows simultaneous weakness in both spot and futures demand, with an overall contraction reaching a cycle low of minus 501,000 BTC.Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.