Highest Crypto Volatility Since FTX Crash Shows Market Fragility

Bitcoin’s worst bout of volatility since the collapse of crypto exchange FTX is exposing a fragile market where failed rebounds are triggering fresh cycles of forced selling.

The token whipsawed again on Friday after sliding more than 50% from its October peak, briefly touching $60,033 before snapping back above $67,000. Rather than helping confidence, the move underscores a feedback loop that’s taken hold: shallow rallies are drawing in tentative dip buyers who are then flushed out whenever prices reverse. That, in turn, is draining liquidity further and reinforcing the pattern.