Bitcoin and Ethereum Plunge to Multi-Month Lows Amid Liquidity Crisis | Crypto Market Analysis

Major cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) have experienced significant declines, reaching their lowest price levels in several months. This market downturn coincides with a substantial reduction in trading liquidity across cryptocurrency exchanges. Market analysts attribute this liquidity drain to several factors including macroeconomic pressures, regulatory uncertainties, and decreased institutional participation. The current market conditions reflect heightened investor caution as trading volumes continue to diminish across both spot and derivatives markets. Technical indicators suggest further potential downside unless fundamental market conditions improve, with many traders adopting a wait-and-see approach amid the ongoing volatility.