• Bitcoin's price fell to a seven-month low, dropping 5.5% to $81,668.
• Ethereum slid by more than 6%, reaching $2,661.37, marking its lowest value in four months.
• About $1.2 trillion has been wiped off the total market value of cryptocurrencies over six weeks.
• The decline signals a shift away from riskier assets, with concerns centered on high-tech valuations.
• Citi analysts highlight $80,000 as a crucial support level for Bitcoin.

Bitcoin and Ethereum both experienced significant declines on Friday, with Bitcoin tumbling 5.5% to a seven-month low of $81,668 and Ethereum falling more than 6% to $2,661.37. This trend reflects a broader market retreat from riskier assets as investors reassess their positions amid concerns over inflated tech valuations and waning expectations of near-term U.S. interest rate cuts, according to Reuters and India Times.

This sharp decline has effectively erased Bitcoin's year-to-date gains and pushed Ethereum down nearly 19% for the year. Analysts reported that around $1.2 trillion has been lost from the cryptocurrency market in just six weeks, with both assets indicating fragile investor sentiment, particularly as volatility rises in stock markets, specifically among technology shares, according to CBS News and Reuters.

Market analysts are now closely observing a crucial support level for Bitcoin around $80,000, which corresponds with the average price at which Bitcoin is held in exchange-traded funds (ETFs), as highlighted by Citi analysts. The selloff follows a recent unprecedented single-day crash that resulted in $19 billion in-liquidations, further escalating the market's precarious conditions, as noted by India Times and Reuters.

Investors are currently pulling back from riskier assets, not only due to fluctuations in cryptocurrency values but also due to concerns about a potential bubble in artificial intelligence stocks which have shown increased volatility. According to various analysts, the current environment poses questions regarding the desirability of holding Bitcoin, particularly as many are liquidating positions to cover margin calls stemming from leveraged trading, as discussed in detail by CBS News.

The recent downturn has also negatively impacted companies associated with cryptocurrency investments. For instance, major holdings platforms have seen their stocks decline significantly, with companies like Strategy down 11% and facing potential exclusion from key indexes, leading to forced selling by managing funds, according to Reuters and India Times.