Crypto Crash: Bitcoin and Ethereum Plummet Amid Global Market Turmoil

Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, have experienced significant declines in recent days, with Bitcoin dropping to a yearly low of $80,100 and Ethereum reaching a 14-month low of $2,150. This downturn in the crypto market is largely attributed to a growing risk-off sentiment, as investors seek safer assets amid global economic uncertainty.

The decline in cryptocurrency prices comes amidst a broader sell-off in global equity markets, with U.S. stocks closing lower on Thursday. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all experienced losses, driven by concerns over potential tariffs and a sell-off in tech stocks led by Nvidia. Investors have been increasingly cautious, with capital flowing into U.S. Treasuries and the dollar as a safe haven.

Liquidations across the broader crypto market surged past $220 million within the past hour, with Bitcoin long positions accounting for nearly half of the total. Although this figure is significantly lower than the $600 million in liquidations reported on Monday, it indicates a decline in sentiment that had previously been lifted by U.S. President Donald Trump's inauguration.

Analysts have cited the ongoing war in Ukraine as a more significant factor influencing this year's market cycle. However, broader investor sentiment appears cautious, with capital flowing into U.S. Treasuries and the dollar as traders seek safety amid mounting uncertainty. As the crypto market continues to evolve, investors will be closely watching for any signs of a turnaround in sentiment and potential catalysts for a rebound in prices.