Bitcoin dropped 5.5% to $81,668, marking its weakest level in seven months, while Ethereum plunged over 6% to $2,661, a four-month low. Both major tokens have shed around 12% this week, underscoring a rapid deterioration in sentiment.
Analysts link the decline to a broader flight from high-risk assets, triggered by a selloff in AI and tech stocks, rising volatility, and fading hopes of near-term interest rate relief.
The impact has been severe: nearly $1.2 trillion has been erased from the global crypto market in just six weeks, data from CoinGecko shows.
Hong Kong–listed Bitcoin ETFs from China AMC, Harvest, and Bosera also slumped nearly 7%, reflecting the global reach of the downturn.
Bitcoin’s turbulent year continues
Bitcoin had soared to an all-time high above $120,000 in October, but the recent correction has wiped out all of its 2025 gains, leaving it down 12% so far this year. Ethereum is down almost 19% year-to-date.
Market analyst Tony Sycamore (IG) warned:
“If Bitcoin is signaling broader risk aversion, markets could be heading into a very ugly phase.”
Citi’s Alex Saunders added that the $80,000 level is crucial, as it represents the average Bitcoin acquisition cost for U.S. ETFs.
Crypto-linked stocks feel the pressure
The selloff has spilled into companies with heavy crypto exposure:
- MicroStrategy plunged 11% this week, nearing its lowest level in a year.
- Metaplanet has collapsed nearly 80% since June.
- Coinbase slid 1.9%, marking its longest losing streak in over a month.
- Crypto miners MARA Holdings and CleanSpark fell 2.4% and 3.6%, respectively.
- Newly listed exchange Gemini crashed 62% from its IPO price.
CryptoQuant noted that Bitcoin’s market structure is now the most bearish since the January 2023 bull run began, suggesting the current demand wave may have peaked.
Market outlook: more turbulence ahead?
The latest selloff highlights how tightly cryptocurrencies are tied to global risk sentiment. Analysts caution that if the risk-off mood deepens, further declines across digital assets and crypto-related stocks are highly likely.
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