Ether experiences a 6% decline as cryptocurrencies suffer alongside tech stock rout.

The S&P 500 and Nasdaq Composite experienced their worst day since 2022, causing cryptocurrencies to fall one day after a reversal in technology stocks.

The price of Bitcoin was down 2% to $64,299.18 early Thursday, according to Coin Metrics. Disappointing quarterly earnings from Alphabet and Tesla on Tuesday weighed on the tech sector, causing investors to shift away from high-risk assets, including cryptocurrencies.

"Joel Kruger, market strategist at LMAX Group, stated that the setbacks are due to macro forces, with global financial markets in turmoil. He explained that concerns about the health and outlook for the global economy have intensified due to softer economic data, downbeat US earnings, and ineffective accommodative central bank moves. As a result, there has been no escape, with most major assets across currencies, commodities, and stocks succumbing to traditional safe havens."

The ongoing Mt. Gox repayment schedule has led to a persistent round of bitcoin selling pressure this month, according to him.

As newly-launched ether exchange-trade funds traded for a third day, ETHE, the Grayscale Ethereum Trust (ETHE), which converted to an ETF, saw $484 million in outflows in the previous session. Meanwhile, ETHE's price fell 6% to $3,172.59.

"According to Yuya Hasegawa, a crypto market analyst at Bitbank, the current situation is similar to when spot bitcoin ETFs were launched in January. Specifically, Grayscale's Ethereum trust had been trading at a discount for a long time, which may have led traders to buy shares of the trust and now sell spot ETH for arbitrage. This is also what happened with bitcoin when the ETFs started trading."

The launch of ether ETFs could potentially give bitcoin prices a boost, as investors have positive news to look forward to, according to Hasegawa.

The Bitcoin 2024 conference begins on Thursday, with pro-bitcoin U.S. politicians from both sides of the aisle expected to speak, including Donald Trump. There is also growing anticipation for a Fed rate cut in September.

As cryptocurrencies declined, crypto-related stocks also retreated. Bitcoin miner stocks fell 1% and 3%, with the largest miners, and , experiencing a 2% and 4% decline, respectively.

Despite recent setbacks in crypto, Kruger views them as a minor blip within a strong uptrend. In contrast with the S&P 500's 14% gain year-to-date, bitcoin and ether have risen 51% and 38%, respectively.