Bitcoin (BTC) extended its decline during Asian trading hours on Monday, plummeting below $50,000 before partially rebounding to nearly $53,000. Despite the recovery, the cryptocurrency remains at its lowest level since mid-February. Bitcoin’s price dipped as low as $49,112, according to data from TradingView.
Ethereum (ETH), the native token of the Ethereum blockchain, also faced significant losses, falling to $2,060 its lowest point since January 3. The CoinDesk 20 index, which tracks some of the most liquid non-stablecoin tokens, experienced a sharp decline of nearly 20%.
Ether’s nearly 25% drop marks the worst single-day decline for the token since May 2021. The severe sell-off was fueled by rumors regarding crypto market maker Jump Trading, which were exacerbated by on-chain analysis from spotonchain. The analysis identified a wallet allegedly linked to Jump Trading that transferred 17,576 ETH, valued at over $46 million, to centralized exchanges, suggesting potential liquidation.
The turmoil led to over $1 billion in liquidations across the crypto futures market, with ether alone accounting for over $350 million in liquidated positions—an uncommon occurrence.
This market bloodbath has been triggered by broader financial market declines amid rising fears of a global recession and escalating tensions in the Middle East. The Nikkei 225 Index in Japan plunged 12.4%, the Stoxx Europe 600 Index fell 2.8%, and micro futures on the S&P 500 Index dropped 2.9%.
As a result, the crypto fear and greed sentiment index has flashed “fear,” reaching its lowest level since early July. This index, which gauges market sentiment based on volatility, prices, and social media data, indicates heightened anxiety among market participants a potential signal of local market bottoms.
