Bitcoin (BTC) continued its downward trajectory during the Asian trading session on Monday, dipping below the $50,000 threshold before rebounding to approximately $53,000. This marks its lowest valuation since mid-February, driven by escalating tensions in the Middle East and heightened concerns about the global economic landscape, eroding investor confidence.

The preeminent cryptocurrency plummeted for the fourth consecutive day, reaching a nadir of $49,112, according to TradingView data. Ether (ETH), the native cryptocurrency of the Ethereum blockchain, also experienced a significant drop, hitting a low of $2,060, the weakest since January 3rd. The CoinDesk 20 index, which monitors some of the most liquid non-stablecoin tokens, declined nearly 20%.

Ether’s nearly 25% tumble represents its most severe single-day decline since May 2021. The sharp sell-off in ether was exacerbated by speculations surrounding crypto market maker Jump Trading’s asset liquidation. On-chain analyst Spotonchain identified a wallet allegedly associated with Jump Trading that transferred 17,576 ETH, valued at over $46 million, to centralized exchanges, indicating potential liquidation.

This widespread sell-off resulted in over $1 billion in liquidations within the crypto futures market, with ether alone accounting for over $350 million in liquidated positions, an unusual occurrence.

The mass exodus from bitcoin and the broader cryptocurrency market was precipitated by a broader decline in financial markets. Investors were spooked by the prospects of a global recession and rising geopolitical tensions in the Middle East. Japan’s Nikkei 225 Index plummeted 12.4%, the Stoxx Europe 600 Index dropped 2.8%, and micro futures on the S&P 500 Index fell 2.9%.

Consequently, the crypto fear and greed sentiment index signaled “fear,” hitting its lowest point since early July. This index monitors volatility, prices, and social media data to gauge market sentiment, with “fear” typically indicating potential local bottoms, while “greed” signifies market peaks.