The cryptocurrency market witnessed another sharp sell-off as Bitcoin dropped under the critical $117,000 mark, dragging major altcoins lower. Ethereum also slipped, touching $4,400, as risk sentiment weakened across global markets.
Bitcoin’s fall triggered heavy losses for firms holding large digital asset reserves. Publicly traded treasury companies and crypto-focused funds saw their valuations contract, reflecting growing concerns over volatility. Analysts note that corporate treasuries exposed to Bitcoin are especially vulnerable when price action breaks major support levels.
Ethereum, the second-largest digital asset, followed Bitcoin’s decline. Traders point to slowing momentum in decentralized finance activity and profit-taking after recent rallies. With ETH holding just above $4,400, market watchers are monitoring whether buyers can defend this key zone. A further slide could pressure decentralized applications and token projects that rely on strong Ethereum network activity.
Market experts suggest that the decline is tied to broader macroeconomic conditions. Rising bond yields, persistent inflation data, and speculation about central bank tightening have reduced investor appetite for risk assets. This shift has pushed many institutional players to trim exposure to volatile digital assets.
Despite the pullback, long-term bulls argue that adoption remains strong. Bitcoin’s role as a treasury reserve asset is still gaining traction among corporations, and Ethereum continues to lead in smart contract applications. However, near-term price action may remain choppy as traders weigh macro uncertainty against long-term blockchain growth.
For now, crypto investors are watching the $115,000 zone on Bitcoin and the $4,200 level on Ethereum as crucial supports. A decisive break below could spark deeper liquidations, while a rebound may restore confidence in the ongoing digital asset cycle.