The prices of Bitcoin (BTC) and Ethereum (ETH) have wiped out recent gains, shedding 6% and 7%, respectively.
The swift and bearish price action also resulted in roughly $133 million in Bitcoin and Ethereum positions liquidated.
At the time of writing, Bitcoin is changing hands at $29,587, down 5.85% over the day.
This also puts the largest cryptocurrency with a market capitalization of $563.33 billion down a whopping 57.06% from its all-time high of $68,789.63 recorded last November.
Ethereum, the second-largest cryptocurrency, has shed 7.42% over the past 24 hours and currently trades at $1,764.
The current bearish action puts Ethereum down 64.02% from its all-time high of $4,891.70, recorded in November 2021.
According to Crypto Fear & Greed Index, a way to gauge crypto market movements and whether cryptocurrencies are fairly priced is down (15 out of 100) indicating “extreme fear” in the markets.
One of the likely reasons behind today’s bearish action is reduced DeFi activity on Ethereum and a slump in Bitcoin trading activity.
TVL on Aave, the largest DeFi protocol on Ethereum, lost 15% over the past month.
Other blue-chip projects like MakerDAO, Curve Finance, Lido, and Uniswap also lost double-digits of TVL over the same period.
Elsewhere, Bitcoin’s flow to fiat exchanges (where people can sell Bitcoin to cash) is up 5% over the past 24-hours, suggesting a sell-off of Bitcoin to cash.