Crypto has long been a leveraged trade on the Nasdaq but lately it’s turned into a bad deal. It’s received none of the upside in the summer Nasdaq rally and is increasingly subject to leveraged downside. Ethereum has certainly outperformed bitcoin in the past few months but it’s giving back a chunk of that today as it falls 7.5% compared to a 3.8% drop in bitcoin.

More broadly, it’s an across-the-board rout in crypto:

• Cardano -6%
• Solana -7.2%
• Ripple -5.6%
• Binance coin -6.1%

As for ETH, the fall puts it right back into the $2800-$4000 range that dominated 2024.