The cryptocurrency market has experienced a significant downturn recently. Bitcoin has fallen by over 11%, trading at around $50,827, while Ethereum has dropped 25% to $2,221, marking its steepest fall since 2021. The overall crypto market is down nearly 12% in the past 24 hours [[❞]](https://cryptonews.com/news/bitcoin-ether-price-drop-2021-crypto-market-collapse.htm) [[❞]](https://markets.businessinsider.com/news/currencies/crypto-futures-witness-840m-in-liquidations-as-bitcoin-nosedives-ether-records-biggest-fall-since-2021-1033637216).

This decline has been driven by several factors, including widespread risk aversion in global markets due to economic uncertainties, geopolitical tensions in the Middle East, and disappointing job growth and corporate earnings in the US. Additionally, rumors of market maker Jump Trading exiting the crypto business have contributed to investor anxiety [[❞]](https://cryptonews.com/news/bitcoin-ether-price-drop-2021-crypto-market-collapse.htm).

Furthermore, the crypto futures market saw over $1 billion in liquidations, with Ether futures alone accounting for $304 million. This liquidation has affected over 200,000 traders, highlighting the significant market volatility [[❞]](https://markets.businessinsider.com/news/currencies/crypto-futures-witness-840m-in-liquidations-as-bitcoin-nosedives-ether-records-biggest-fall-since-2021-1033637216).

Investors are closely monitoring the situation, especially considering the potential for a prolonged bear market and the impact of large-scale withdrawals from Bitcoin ETFs, which recently saw their largest outflow in months [[❞]](https://cryptonews.com/news/bitcoin-ether-price-drop-2021-crypto-market-collapse.htm) [[❞]](https://markets.businessinsider.com/news/currencies/crypto-futures-witness-840m-in-liquidations-as-bitcoin-nosedives-ether-records-biggest-fall-since-2021-1033637216).