Bitcoin and major altcoins sold off sharply as risk assets weakened globally, with bitcoin falling about 2.5% to near $73,000 and fully erasing its post-election rally.
The downturn pushed the Crypto Fear and Greed Index to 14, deep into extreme fear territory, as ethereum and solana dropped roughly 5% and 7% respectively.
The crypto slump coincided with heavy losses in technology stocks, with the Nasdaq 100 sliding further and major software names extending declines from their highs.
Broader risk aversion has been amplified by geopolitical tensions in the Middle East and concerns over potential US military action against Iran, driving investors toward safe havens.
Gold prices surged above $5,000 while crude oil climbed close to $70, signalling markets are pricing in heightened geopolitical risk.
Rising volatility also triggered a spike in liquidations, with total crypto liquidations jumping 192% in 24 hours to more than $794 million.
More than 174,000 traders were liquidated, led by ethereum and bitcoin positions, as analysts warned fear-driven selling often precedes sharp but uncertain market turning points.
At the time of reporting, Bitcoin price was $70,986.44.