Bitcoin (BTC-USD) climbed to nearly $67,000 on Friday after a continued decline overnight sent prices as low as $61,000 following a 13% plunge on Thursday, the steepest one-day drop for the cryptocurrency since the FTX collapse in November 2022.

Even with Friday’s recovery, bitcoin remains on pace for its worst week since 2022.

Selling this week cascaded into Thursday night’s lows, making bitcoin’s decline from its all-time high above $126,000 last October greater than 50%.

“From a sentiment perspective, comparisons across cycles are always imperfect, but anecdotally there is an outsized sense of fear and fatigue among crypto-native participants,” Sean Farrell, head of digital assets at Fundstrat, wrote in a note on Thursday night.

The strategist said he was increasing net long exposure to 80% in his portfolio, but “leaving some wiggle room for another visit into the [$50,000s].”

Read more: How to navigate a crypto meltdown

Other strategists have also warned that bitcoin could still drop further.

10X Research recently pointed out a significant overhang for the crypto market: overexposed bitcoin ETF holders who are underwater, with an estimated average acquisition price of around $90,000. A similar dynamic was also playing out with ethereum (ETH) ETFs.

“Under these conditions, attracting incremental allocations from Wall Street investors becomes increasingly difficult, particularly when many existing holders likely regret not reducing exposure at significantly higher levels,” 10X said in its note on Thursday.

Ether, the second-largest cryptocurrency, hovered near $1,900 on Friday, down nearly 15% over the past five sessions.

The decline in crypto also came alongside broad selling pressure in equity markets, as well as a sharp sell-off in gold (GC=F), silver (SI=F), and other metals.

Bitcoin is down roughly 23% year to date; in January, bitcoin recorded its fourth consecutive monthly loss.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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