Crypto Crash: Bitcoin, Ethereum Plummet Amid Market Turmoil

Bitcoin and Ethereum, two of the world's leading cryptocurrencies, have experienced a significant downturn in recent days, with Bitcoin falling below $84,000 and Ethereum hitting a five-month low. This market turmoil has sparked concerns across the industry, as investors grapple with substantial volatility.

Over the past 24 hours, the crypto market has witnessed a staggering $600 million in liquidations, highlighting the challenges faced by major digital assets. Bitcoin liquidations alone have reached approximately $335 million, indicating a bearish momentum among traders.

Bitcoin's price has slipped as low as $83,724, marking a critical juncture as it remains under the key $84,000 threshold. This shift has not been seen since early November, when the cryptocurrency first dipped after the presidential election results. At its peak of over $108,000 just a month ago, Bitcoin has now decreased by approximately 23%, leaving investors wary as market conditions worsen. The relentless downward pressure can be attributed to a mix of macroeconomic factors and specific incidents affecting market confidence.

Ethereum has faced an even tougher battle, with its price dropping below $2,275, representing a significant 4% decline within the day. This downturn has positioned Ethereum down 53% from its all-time high of $4,878 achieved in 2021. Such steep declines have raised alarms about the ongoing health of the altcoin sector. The combination of inflation worries, political uncertainties surrounding President Trump's evolving tariffs, and diminished enthusiasm for meme coins has contributed to the adverse market conditions. Furthermore, the recent $1.4 billion hack of the Bybit exchange has heightened apprehensions among cryptocurrency investors, further amplifying volatility.

In a broader context, the entire crypto market has witnessed a decline of about 4% over the last day, exacerbated by the cascading effects of liquidation events. Total liquidations rose sharply on platforms, primarily driven by futures contracts. The latest data reveals that over $613 million has been liquidated in the crypto space within the last 24 hours, indicating a sharp shift in trader sentiment. This volatility reflects a larger trend in the market where sudden price drops trigger a chain reaction of liquidations, compounding losses for over-le