Bitcoin and ether led a broad decline in digital assets on Thursday, triggering heavy liquidations and dragging altcoins sharply lower.
Ether (ETH) dropped more than 3% to fall under $4,000, sparking multimillion-dollar liquidations, including losses for at least one large holder. Bitcoin (BTC) slid 1.5% to $115,600, nearly erasing gains from Wednesday’s rebound.
Altcoins fared even worse, with recent high performers ASTR, AVAX, and PUMP plunging by double digits over the past 24 hours. The downturn came alongside weakness in Nasdaq and S&P 500 futures, as rising risks of a potential U.S. government shutdown dented investor sentiment.
A Warning Sign for Broader Markets?
Some analysts suggest crypto may once again be acting as a bellwether for global risk appetite.
“Crypto is once again signaling shifts in risk appetite,” said Alex Kuptsikevich, chief market analyst at FXPro. “Altcoins and smaller developed market currencies have been weakening since the Federal Reserve’s rate cut last week, and major U.S. indices began following this trend from Tuesday onward.”
