- Bitcoin Hits Yearly Low Amid Market Sell-Off: BTC dropped 5% to $80,100, while Ethereum fell 8% to $2,150, marking its lowest level in 14 months as risk aversion intensified.
- Stock Market Decline Fuels Bearish Sentiment: The S&P 500 (-1.6%), Nasdaq (-2.8%), and Dow (-0.4%)tumbled, with Nvidia leading a major tech sell-off, adding to Bitcoin’s struggles.
- Geopolitical and Economic Uncertainty Weighs on Crypto: Tariff fears, Ukraine war tensions, and Fed policy concerns continue to drive investors toward U.S. Treasuries and the dollar for safety.
Bitcoin ($BTC) has taken a beating, sinking to a fresh yearly low late Thursday as risk aversion grips both equities and crypto markets. The world’s largest digital asset tumbled 5%, hitting $80,100, its lowest level since early 2025, according to CoinGecko.
Ethereum ($ETH) isn’t faring much better. The second-largest crypto has dropped 8% to $2,150, marking its lowest point in over 14 months.
Crypto Liquidations Surge as Sentiment Sours
“We’ve gotten used to U.S. ETFs picking up the slack, but that’s not happening right now. Instead, we’re seeing fund outflows hitting record levels over the past week,” said Pav Hundal, lead analyst at Swyftx, in a comment to Decrypt.
Liquidations have piled up across the crypto market, exceeding $220 million in just the past hour, per CoinGlass data. Bitcoin long positions made up nearly half of that total, suggesting traders were caught off guard by the latest plunge.
Stock Market Slumps—Bitcoin Caught in Macro Turmoil
U.S. equity markets closed deep in the red on Thursday, adding to the broader risk-off sentiment in financial markets:
- S&P 500 dropped 1.6%
- Dow Jones Industrial Average fell 0.4%
- Nasdaq Composite plunged 2.8%, led by a sell-off in tech stocks—most notably Nvidia.
Investor confidence is shaky at best, with concerns mounting that President Trump will impose tariffs on imports from the EU, Mexico, and Canada. Some economists warn this move could fuel inflation, further complicating the Federal Reserve’s monetary policy outlook.
Geopolitical Risks Weigh Heavy on Market Cycle
Beyond tariffs, analysts argue that the ongoing war in Ukraine remains a key market driver. Global sentiment remains cautious, with investors flocking to U.S. Treasuries and the dollar for safety amid growing uncertainty.
Despite the bleak picture, Hundal remains cautiously optimistic, citing upcoming U.S. inflation data as a potential catalyst.
“If inflation surprises to the downside, we could see some renewed optimism enter the market,” he noted. “Right now, policymakers are watching two key factors—the labor market and inflation trends.”
With Bitcoin struggling to regain its footing, traders are left watching the macro landscape closely, wondering whether another leg down is coming—or if relief is finally on the horizon.
