Bitcoin fell as much as 6% early Friday, briefly dipping near the key $80,000 support level as investors pulled back from risk assets.

Analysts say selling pressure has intensified due to renewed activity from long-term holders, shrinking ETF inflows, and cascading liquidations that began in October.

Although the cryptocurrency later recovered part of its losses, it remains down 12% this week, 26% over the past month, and 30% from its October record above $126,000.

The drop mirrors broader market weakness, as investors rotate out of volatile sectors like crypto and AI into safer assets such as gold amid a slide in the Nasdaq, CNBC has reported.

Crypto-related stocks also slumped, and despite pro-crypto policies under President Trump, bitcoin is now down 9% for the year, with some analysts calling it “very oversold.”