Bitcoin and Ethereum Drop as Markets Struggle

Bitcoin (BTC) fell to a new yearly low late Thursday as market risk aversion impacted both equities and cryptocurrency markets.

The world’s largest cryptocurrency declined by 5% to $80,100, marking its lowest level since the beginning of 2025, according to CoinGecko data.

Similarly, Ethereum (ETH), the second largest cryptocurrency, dropped 8% to $2,150, reaching its lowest point in over 14 months.

Liquidations across the broader cryptocurrency market surged past $220 million within the past hour, with Bitcoin long positions constituting nearly half of that total, as reported by CoinGlass data.

This figure, although significantly lower than the $600 million in liquidations reported on Monday, reflects a shift in sentiment that was previously buoyed by U.S. President Donald Trump’s inauguration.

Meanwhile, U.S. stock markets closed lower on Thursday, with the S&P 500 down 1.6%, the Dow Jones Industrial Average slipping 0.4%, and the Nasdaq Composite declining by 2.8%. A sell-off in tech stocks, particularly led by Nvidia, combined with concerns over potential tariffs from President Trump, weighed heavily on investor sentiment.

Investor confidence has dipped due to fears that Trump will impose taxes on foreign imports from the EU, Mexico, and Canada—an economic policy that some economists warn could lead to higher inflation. However, some analysts believe such measures might strengthen domestic industries and promote economic growth.

While most analysts from Decrypt pointed out that the ongoing war in Ukraine is a significant factor affecting the current market cycle, broader investor sentiment seems cautious, with capital moving into U.S. Treasuries and the dollar as traders seek safety amid increasing uncertainty.