Bitcoin (BTC) Tumbles Over 3% to $64,000 as Nasdaq 100 Index Suffers Sharpest Decline Since October 2022

Bitcoin (BTC) experienced a sharp decline on Wednesday, as it fell over 3% to the $64,000 mark. Over the past 24 hours, long liquidations in the crypto market surged to $220.7 million

Bitcoin (BTC) price fell sharply on Wednesday, dropping over 3% to reach the $64,000 level. According to data from CoinGlass, long liquidations in the crypto market amounted to $220.7 million over the past 24 hours.

This steep decline coincided with broader market losses in the Nasdaq 100 index, which fell 3.65%, marking its sharpest decline since October 2022.

Moreover, short positions worth $32 million were liquidated. A majority of these liquidations were concentrated in Ethereum, which accounted for $17.5 million, followed by Bitcoin with $14.8 million.

Meanwhile, Ethereum's price dropped nearly 8.6% over the past 24 hours, following the launch of spot Ethereum ETFs on Tuesday. Currently, ETH is trading at $3,159.

Several analysts have linked Bitcoin’s performance to tech stocks, considering factors such as the shifting political landscape in Washington, D.C., and the anticipation surrounding U.S. spot Ethereum exchange-traded funds.

Despite the short-term losses that surprised many traders, some remain optimistic about the potential for upward momentum in the coming months.

"We maintain a positive Ethereum outlook," stated Singapore-based crypto trading firm QCP Capital in a note on Tuesday, a day prior to Bitcoin's decline.

“Bitcoin's achievement of an all-time high two months post-ETF launch provides a compelling precedent. Anticipating sustained institutional interest, ETH’s price trajectory may gradually converge with its previous all-time high.”

The recent selloff in tech stocks was reportedly triggered by earnings reports from major companies, including Google parent Alphabet Inc., which revealed higher-than-expected capital expenses. Consequently, Alphabet's stock fell over 5%, marking its worst performance since January. Tesla also experienced a significant drop of more than 12%, while Nvidia, a leading figure in artificial intelligence, saw its stock shed 6.8%.