Cryptocurrency Market Plunges: What Caused the Recent Losses?

Bitcoin saw a dramatic decline, dropping below $85,000 for the first time since April, sparking a cascading effect across the cryptocurrency market. The sell-off, fueled by losses exceeding 3% in global equity markets and significant withdrawals from Bitcoin exchange-traded funds (ETFs), has resulted in a massive liquidation of nearly $2 billion worth of leveraged positions. Ethereum also experienced steep losses, with its value dropping below $2,750 and representing a 14% decline over the past week.