The effects of last week’s weak US labor data, sluggish manufacturing activity, and the volatility of markets around the world have crept into the crypto market, causing Bitcoin to dip — albeit briefly — below $50,000 on Monday. The cryptocurrency has rebounded to over $54,000 but is still far away from March’s peak of $74,000. 

Ether, the second-largest cryptocurrency, has also experienced a sharp decline, now trading only marginally above its value at the start of the year. This is considering the strong debut of ETH ETFs in late July.

The market-wide selloff resulted in the erasure of approximately $367 billion from the overall cryptocurrency market capitalization, according to CoinGecko data. This decline led to over $1.13 billion in liquidations in the derivatives markets, as reported by Coinglass.

The cryptocurrency market’s decline coincides with a challenging period for tech stocks, with the Nasdaq index experiencing its worst three-week stretch since September 2022. Major tech companies such as Amazon, Intel, and Nvidia contributed to this decline.

Related: Buffett’s Berkshire Slashes Apple Stake by Half in Major Selloff

Despite the current market turbulence, the cryptocurrency industry has seen growing political support in recent months. However, the industry continues to face regulatory challenges, including ongoing legal disputes with the SEC.

Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.