Bitcoin (BTC) experienced a sharp decline on Wednesday, as it fell over 3% to the $64,000 mark. Over the past 24 hours, long liquidations in the crypto market surged to $220.7 million, according to CoinGlass data. This steep drop coincided with broader market losses in the Nasdaq 100 index, which fell 3.65%, marking its sharpest decline since October 2022.

Additionally, $32 million in short positions were liquidated. The majority of these liquidations were concentrated in Ethereum, which accounted for $17.5 million, followed by Bitcoin with $14.8 million. Meanwhile Ethereum's price has dropped nearly 8.6% over the past 24 hours, after the spot Ethereum ETFs were launched on Tuesday. ETH is now trading at $3,159.

Analysts have linked Bitcoin’s performance to tech stocks, citing various factors, including a shifting political landscape in Washington, D.C., and optimistic bets on U.S. spot Ethereum exchange-traded funds.

Despite the short-term losses that caught many traders by surprise, some analysts remain optimistic about the potential for upward momentum in the coming months. "We maintain a positive Ethereum outlook," stated Singapore-based crypto trading firm QCP Capital in a note on Tuesday, just a day before Bitcoin's decline. "Bitcoin's achievement of an all-time high two months post-ETF launch provides a compelling precedent. Anticipating sustained institutional interest, ETH’s price trajectory may gradually converge with its previous all-time high."

The recent selloff in tech stocks was reportedly triggered by earnings reports from major companies, including Google parent Alphabet Inc., which revealed higher-than-expected capital expenses. Alphabet’s stock consequently fell over 5%, its worst performance since January. Tesla also experienced a significant drop of more than 12%, while Nvidia, a leading figure in artificial intelligence, saw its stock shed 6.8%.