Bitcoin fell to its lowest level in more than five months as risk aversion swept the global markets.

This is the second time this year that the world’s most valuable digital currency has dipped below $40,000, with the price touching $38,642 in the middle of the Asian trading day.

Bitcoin was down about 8% in the last 24 hours, according to CoinGecko, while Ether was down nearly 10%, hitting $2,841 during the intraday.

Other layer-1-based tokens, such as Solana and Cardano, have also suffered losses of 9% and 10%, respectively. Since November, the value of digital tokens has dropped by $1 trillion.

Fundstrat Digital Asset Research strategists Sean Farrell and Will McEvoy said,

“Bitcoin and the broader crypto market remain subject to the whims of macro variables.”

According to Bloomberg, digital currencies have become indicative of a retreat in speculative investments, sparked by the likelihood of stricter monetary policy and perhaps hiking the interest rate in the United States.

Bitcoin’s value has skyrocketed in recent years due to a popular narrative centered on institutional acceptance, suitability as a portfolio hedge, and store of value.

According to CoinGlass, approximately $600 million has been liquidated in the last twelve hours as the value of cryptocurrencies has dropped. At $250 million, bitcoin was the most liquidated asset, followed by Ether at $163 million and SOL at $10.9 million.

Binance led the cryptocurrency exchange liquidation category with $173 million, followed by Asia-focused exchange Okex with $170 million.

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