Bitcoin Crashes Below $60K as French Central Bank Warns of Risks

Bitcoin Crashes Below $60,000 as Bank of France Sounds the Alarm

After months of soaring optimism, Bitcoin has suffered a severe blow—falling below the crucial $60,000 mark for the first time in over a year. The plunge has sent shockwaves across global markets, reigniting fears about the stability and future of the cryptocurrency sector.

A Drop of Over 50% From Its Peak

Bitcoin is now down more than 50% from its all-time high of $126,000, recorded in October 2025. According to data from Coinglass, the sell-off triggered more than $16 billion in derivatives liquidations over the past ten days, underscoring the intensity of the downturn.

Analysts point to a perfect storm of catalysts fueling the crash:

The U.S. Treasury Secretary’s testimony rejecting any government backing for Bitcoin.
Major ETF outflows, including over $545 million withdrawn from the iShares Bitcoin Trust ETF on February 4.
The appointment of Kevin Warsh—a known monetary “hawk”—as the new chair of the U.S. Federal Reserve, heightening expectations of tighter financial conditions.

“Risks Are Materialising,” Warns France’s Central Bank

In an interview with BFM Business, François Villeroy de Galhau, Governor of the Bank of France, cautioned investors:

“The risks surrounding Bitcoin are now materialising. It’s a highly volatile and risky asset—you can invest, but at your own peril.”

Villeroy de Galhau dismissed overly optimistic narratives about cryptocurrency revolutionizing money:

“I never believed those who claimed Bitcoin was the currency of tomorrow—completely decentralized and libertarian. These ideas are now collapsing.”

He also issued a broader warning about financial scams:

“If someone promises high returns with zero risk, walk away. That person is either incompetent or dishonest.”

A Crypto Market in Turmoil

The sell-off isn’t confined to Bitcoin. Ethereum (ETH) also slid below $2,000, while the Crypto Fear & Greed Index has plunged to the “Extreme Fear” zone, hovering between 14 and 19—levels historically associated with capitulation.

Market sentiment remains fragile. Some traders expect a short-term rebound, while others foresee further declines, with analysts like Markus Thielen of 10X Research predicting Bitcoin could dip toward $50,000 in the coming months.

Can Bitcoin Recover?

Despite the panic, many in the crypto community view this as part of Bitcoin’s long-term cycle. Historically, major corrections have paved the way for consolidation and eventual recovery. However, the days of unchecked enthusiasm appear to be over—at least for now.

Key things to watch in the coming weeks include:

Institutional investor flows into Bitcoin ETFs.
U.S. monetary policy and inflation updates.
Global regulatory developments, particularly in the EU and U.S.

Bottom Line

Bitcoin’s drop below $60,000 marks a sobering reminder of the market’s volatility. For investors, it’s a time to reassess risk, stay informed, and resist panic decisions driven by market sentiment.