Bitcoin Slips Under $60,000 for First Time Since 2024 as Zcash Security Issue Weighs on Sentiment
Bitcoin extended losses on Friday, briefly falling below $60,000 in intraday trading—its first drop under that threshold since 2024—while major tokens moved lower amid stronger-than-expected U.S. jobs data, choppy ETF flows and renewed security concerns tied to Zcash, CoinDesk reported.
At the time of writing, Bitcoin traded at $59,909, down about 6% on the day and 18.5% over the past week. Ethereum changed hands at $1,555, down roughly 23% over seven days, while Solana traded at $63.75, down 22% over the same period.
Bitcoin has fallen more than 52% from its record high of $126,080 set in October last year. Earlier this week, traders pointed to persistent ETF outflows and Strategy's first Bitcoin sale since 2022 as key drivers of the prior leg down.
U.S. jobs report dents rate-cut hopes
The latest slide has been more tightly linked to shifts in macro expectations. The U.S. added 172,000 jobs in May, about double market forecasts. After the release, traders increased bets on additional interest-rate hikes this year, a backdrop that typically pressures risk assets such as Bitcoin.
Nansen research analyst Nai Søndergaard said the strong employment print has reduced expectations for rate cuts. He added that Bitcoin has already sold off sharply, leveraged long positions have yet to be fully unwound, and without fresh macro catalysts, upside for a rebound appears limited. Elevated Middle East tensions have also weighed on broader risk appetite.
Zcash vulnerability disclosure hits confidence
Beyond macro factors, sentiment deteriorated further after disclosures around a Zcash vulnerability. The development team issued a patch this week, then said Thursday that the network's privacy-focused design currently makes it impossible to confirm whether the flaw was exploited to mint a potentially unlimited amount of ZEC.
The update sparked a sharp move in ZEC, which fell more than 40% over the past 24 hours. As investors gauge potential spillovers, some have also raised concerns that increasingly capable AI models could eventually be used to identify weaknesses in other major cryptocurrencies, keeping security risks in focus.
In ETF-related trading, U.S. spot Bitcoin ETFs snapped a 13-day run of net outflows on Thursday, posting more than $3 million in net inflows. While modest, the reversal came after weeks of cumulative redemptions totaling billions of dollars that pushed overall 2026 flows into negative territory, hinting at a temporary easing in selling pressure.
