Bitcoin Price Plummets: Global Markets React
Last weekend, the financial world experienced a series of unexpected events, leading to a sharp decline in Bitcoin prices. Cryptocurrency markets took a hit, along with traditional financial markets, except for defense stocks. A recent letter to investors from Corbisi encouraged a different outlook: “Don’t be afraid of bears; welcome them.” But is this optimism warranted?
Cryptocurrency Market Turmoil
In just 24 hours, the cryptocurrency market saw a 16% decrease in its total capitalization, with the global market now valued at $1.93 trillion, down 13.85% from the previous day. At present, Bitcoin is trading at $51,829, marking a 14.6% decline in the past day and a significant 25.5% decrease over seven days. Ethereum (ETH), the second-largest cryptocurrency, is also feeling the pressure, with a 21.5% drop in 24 hours and a staggering 32.5% decrease over a week. Coinglass’ on-chain data revealed that over 280,000 traders were liquidated in the past day, resulting in a total liquidation of $1.08 billion. Notably, the largest single liquidation order on Huobi amounted to $27 million in BTC-USD.
Market Turbulence: Causes and Impacts
The recent market turbulence can be attributed to various factors, including the significant plunge in Japanese stocks, registering their biggest decline since the Black Monday sell-off in 1987. This crash was fueled by last week’s global stock market downturn and concerns regarding an impending economic recession. The Nikkei Stock Average plummeted by 12.4%, evoking memories of the October 1987 crash. Concurrently, U.S. stock index futures also took a hit, with Nasdaq-related futures dropping by almost 4%. Notable tech giants like Apple and Nvidia faced substantial losses, with Apple shares dipping by 7.3% following Berkshire Hathaway’s massive sell-off and Nvidia’s stock price decreasing by 6.8% due to delays in the next-gen AI chip launch.
Also Read: Daily Crypto Update: Bitcoin, Ethereum, and Top Assets Slump
