Bitcoin (BTC) dropped to a new yearly low late Thursday as risk aversion continued to pressure both equities and crypto markets.
The world’s largest crypto declined 5% on the day to $80,100—its lowest level since 2025 began, according to CoinGecko data.
Meanwhile, Ethereum (ETH), the world’s second-largest digital asset, is down 8% to $2,150, a more than 14-month low.
"We’ve gotten used to U.S ETFs picking up the slack and that’s not happening right now. Instead, we’ve watched value exit funds at record levels over the last seven trading days as bad news has piled on bad news," Pav Hundal, lead market analyst at crypto exchange Swyftx, told Decrypt.
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, CoinGlass data shows.
Although this figure is significantly lower than the $600 million in liquidations reported on Monday, the shift indicates a decline in sentiment that had previously been lifted by U.S. President Donald Trump’s inauguration.
"Risk aversion has taken over and we’re seeing underwhelming performances across crypto, gold and global equity indexes," Hundal said.
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 dropping 2.8%, as a sell-off in tech stocks—led by Nvidia—combined with concerns over potential tariffs from President Trump weighed on investor sentiment.
Investor confidence has waned amid growing concerns that Trump will implement those taxes on foreign imports from the EU, Mexico, and Canada—an economic policy that some economists warn could drive inflation higher.
Others, however, argue that such measures could bolster domestic industry and spur economic growth.
Most analysts Decrypt previously spoke with suggested that the ongoing war in Ukraine remains a more significant factor influencing this year’s market cycle.
Still, broader investor sentiment appears cautious, with capital flowing into U.S. Treasuries and the dollar as traders seek safety amid mounting uncertainty.
It is not all doom and gloom, Hundal suggests, pointing to incoming US inflation data that could inject optimism if it "surprises to the downside."
"Monetary policy makers in the US are looking at two things right now, the labour market and inflation progress," he said.