Bitcoin fell to its lowest level of 2025 late Thursday, dropping over 6 percent to $79,500 before recovering slightly to $80,100. The decline comes as risk aversion continues to weigh heavily on cryptocurrency markets.

Ethereum also faced a sharp drop, plunging 8 percent to $2,150, marking its lowest level in 14 months. The broader crypto market experienced significant liquidations, exceeding $220 million within an hour, with Bitcoin long positions accounting for nearly half of the total.

Bitcoin is now down 26.37 percent from its all-time high of $108,790, recorded on January 20, 2025. The current price also marks its lowest level since November 2024, reflecting a challenging period for the cryptocurrency market.

Analysts have pointed to a mix of factors driving the sell-off. Some attribute the market uncertainty to geopolitical tensions, including the ongoing Ukraine war, while others suggest that upcoming U.S. inflation data could provide some relief if the figures come in lower than expected.