Bitcoin and ether extended losses on Thursday, with sharp declines across the crypto market triggering large liquidations and amplifying risk-off sentiment.

Ether (ETH) fell more than 3%, slipping below the $4,000 mark and sparking heavy liquidations, including a multimillion-dollar hit for a large holder. Bitcoin (BTC) also retreated 1.5% to $115,600, nearly wiping out gains from Wednesday’s rebound.

Broader crypto markets mirrored the downturn, as major altcoins including ASTR, AVAX, and PUMP—recent outperformers—posted double-digit losses over 24 hours. The slump came alongside declines in Nasdaq and S&P 500 futures, with rising odds of a U.S. government shutdown weighing on risk assets.

Crypto as a Market Signal

Some analysts see the latest drop as a reflection of shifting investor sentiment beyond digital assets.

“Crypto is once again signaling shifts in risk appetite,” said Alex Kuptsikevich, chief market analyst at FXPro. “Altcoins and smaller developed market currencies have been weakening since the Federal Reserve’s rate cut last week, and major U.S. indices began following this trend from Tuesday onward.”