In a stunning turn of events, Bitcoin (BTC-USD) plunged below $50,000 and Ethereum (ETH-USD) took a nosedive. It’s a crypto carnage out there, with investors fleeing risk assets like there’s no tomorrow. Let’s take a look at why Bitcoin and other cryptocurrencies are crashing today.
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Bitcoin’s Big Slide
On Monday, Bitcoin dropped to its lowest level since mid-February, touching $49,112 before recovering to nearly $53,000. The slump comes amid rising tensions in the Middle East and global economic jitters.
At the time of writing, Bitcoin is sitting at $52,630, marking a 13.26% decline over the past day. In fact, Bitcoin fell for a fourth straight day, reflecting a broader market unease.
Ethereum’s Freefall
Ether wasn’t spared either, with the native token of the Ethereum blockchain plummeting to $2,060. According to CoinDesk, on-chain sleuth SpotOnChain pointed out that Jump Trading’s potential liquidation could be behind this, noting a wallet transfer of 17,576 ETH, worth over $46 million, to centralized exchanges. It’s a rare move that’s rattled the market.
At the time of writing, ETH is sitting at $2,321, marking a whopping 20% decline over the past day.
$1 Billion Liquidated
The selloff led to over $1 billion in liquidations in the crypto futures market, with Ethereum seeing $350 million in liquidated bets. The crypto fear and greed index, which gauges market sentiment, hit its lowest level since early July, flashing “fear” as investors panicked.
Broader Market Woes
It’s not just crypto. Japan’s Nikkei 225 dropped 12.4%, and the Stoxx Europe 600 fell 2.8%, with the S&P 500 (SPX) losing 2.9%. These declines are part of a wider fall in financial markets, driven by fears of a global recession. The NASDAQ wrapped up its worst three-week stretch in two years, with Amazon (AMZN) and Nvidia (NVDA) taking heavy hits.
Investors on Edge
Adding to the chaos, new trade data from China and Taiwan, as well as central bank decisions in India and Australia, have investors on edge. The U.S. Federal Reserve’s decision to hold interest rates steady didn’t help either, as it dashed hopes for a rate cut that many had baked into their forecasts.
With $270 billion wiped out of the crypto market in just 24 hours, the fallout will be felt widely, especially after the SEC approved new spot exchange-traded funds for Bitcoin and Ethereum. It’s a stark reminder of just how volatile the crypto world can be.
