Bitcoin and Ether tumble to multi-month lows amid market sell-off

Cryptocurrency markets have faced renewed pressure as Bitcoin and Ether dropped to their lowest levels in months. The decline came alongside a broader sell-off in equities, with the Nasdaq falling sharply. Analysts now point to tightening financial conditions as a key factor behind the pullback.

Bitcoin briefly traded near $62,000 before slipping to around $58,000 during the recent downturn. Ether also fell, reaching $1,507 as market sentiment weakened. Both assets hit cycle lows as the Nasdaq dropped by 5%, reflecting wider risk aversion among investors.

The stablecoin supply ratio (SSR) RSI plunged to 13, suggesting that stablecoin balances have grown significantly compared to Bitcoin’s market value. This indicator often signals oversold liquidity conditions, adding to concerns about short-term market stability. Meanwhile, global M2 money supply expanded to approximately $122.6 trillion over the past year. Despite this growth in liquidity, cryptocurrencies have struggled to regain momentum. The US 10-year Treasury yield remained near 4.53%, slightly down from its peak of 4.68% last month, following stronger-than-expected labour data. Bitwise, a crypto asset manager, noted that Bitcoin tends to react before equities when financial conditions tighten. The firm linked the latest pullback to broader liquidity shifts, reinforcing the view that crypto markets remain sensitive to macroeconomic trends.

The recent drop in Bitcoin and Ether highlights ongoing volatility in digital asset markets. With the SSR RSI at historic lows and equities under pressure, traders are watching for signs of stabilisation. The interplay between global liquidity, Treasury yields, and crypto prices will likely remain a focal point in the weeks ahead.