New Delhi, June 6 -- Bitcoin fell below $60,000 for the first time since October 2024, extending its reversal from market darling after the reelection of US President Donald Trump to a casualty of a rapidly changing speculative landscape.

The largest cryptocurrency slumped as much as 7% to $59,101 on Friday in New York trading hours. Bitcoin has lost more than half its value since reaching a peak above $126,000 in October last year and is now worth less than it was when crypto-friendly Trump retook the White House. Here's a look at why Bitcoin is dropping in the current market environment-and what investors should do now.

Bitcoin's recent decline appears to be driven primarily by liquidity and capital rotation.

Nischal Shetty, founder,...