Ether Continues to Drop, Following Bitcoin’s Decline Amid Risk-Averse Sentiment

Cryptocurrency Market Faces Renewed Downturn

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Following a calm start to the week, the two leading cryptocurrencies experienced another decline on Tuesday as negative sentiment continued to impact digital assets.

Ether, which has suffered greater losses than Bitcoin since a sharp drop in October, slid by as much as 6% to $1,994. By 6:25 a.m. in New York, it was down 5%, trading near $2,014.

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Bitcoin also dropped, losing up to 2.4% and reaching $68,666 after hovering near $70,000 over the weekend and dipping below that mark on Monday. The original cryptocurrency had nearly fallen to $60,000 on Friday before recovering.

Last week proved especially challenging for Bitcoin, erasing all gains made since US President Donald Trump’s reelection at the end of 2024. While the administration has generally been seen as supportive of the crypto sector, Bitcoin is now experiencing its longest monthly losing streak since 2018.

Petr Kozyakov, co-founder and CEO of Mercuryo, commented, “Bitcoin is currently trading just under $70,000, and the crypto market still lacks clear direction as the effects of last week’s selloff linger. Analysts are closely watching for any signs that might indicate the market’s next move.”

Although prices have rebounded from last week’s lows, investor appetite for risk remains subdued regarding the two largest cryptocurrencies. Bearish indicators persist in Bitcoin derivatives, with perpetual futures funding rates staying negative—suggesting traders are still betting on further declines.

Both Bitcoin and Ether have seen significant outflows from their exchange-traded funds since the market downturn in early October. Ether ETFs have lost $3.2 billion, including $462 million withdrawn this year alone. Bitcoin ETFs have experienced $7.9 billion in outflows over the same period, with $1.8 billion of that occurring this year.

Rachael Lucas, an analyst at BTC Markets, noted, “ETH continues to show a bearish trend after dropping below the $2,800 to $3,000 range.” She attributed the selloff to broader risk-off sentiment and a wider decline across the crypto market.

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Reporting contributed by Sidhartha Shukla.

Latest updates include revised prices and additional commentary.

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