As a seasoned crypto investor with over a decade of experience in various financial markets, I have seen my fair share of market volatility and corrections. However, the recent sell-off in both the traditional stock market and crypto market has been particularly noteworthy.
On Wall Street yesterday, there was a significant stock market drop, and this trend appears to have extended to the cryptocurrency sector. The price of Bitcoin has decreased by approximately 3% within the last 24 hours, reaching around $64,000. According to CoinGlass data, over $290 million in crypto market liquidations occurred, with more than $262 million being long positions being closed.
At Binance, the leading cryptocurrency exchange, a staggering $118 million worth of positions were liquidated. A vast majority, 88%, of these liquidations involved long trades. Similarly, in Asia’s prominent crypto exchanges OKX and Huobi, approximately 94% of the liquidation events transpired from long positions.
On Wednesday, US markets experienced their most disappointing day since 2022, with significant losses for megacap tech shares in the technology sector. The decrease in value followed a noticeable decline in enthusiasm surrounding artificial intelligence investments.
On Wednesday, Google parent company Alphabet and Tesla reported combined quarterly earnings that caused their shares to decline by as much as 12%. Together, the “Magnificent 7” tech stocks suffered a collective loss of over $750 billion in market value, representing the largest one-day decrease for this group in history.
Benjamin Celermajer, co-chief investment officer at Magnet Capital told Bloomberg:
After a disappointing night for US stocks, the sentiment towards cryptocurrencies has also been negatively impacted, with many investors adopting a cautious approach.
In addition to Bitcoin, other alternative coins have experienced a more pronounced decrease in value. The cost of Ethereum dropped by approximately 8%, reaching $4,150 earlier today, following the recent launch of an Ethereum spot exchange-traded fund (ETF). It’s evident that this ETF debut led to selling pressure on Ethereum prices.
Japanese Yen Surge Intensifies Liquidations
On Thursdays trading day, the Japanese Yen effectively regained ground versus the US dollar, leading to substantial selling off in various risk-taking assets such as stocks, gold, and Bitcoin.
The Japanese yen reached its strongest point versus the US dollar in over two months. This powerful yen could negatively impact Japan’s exporters, potentially leading to a significant correction for the Nikkei 225 index.
The appreciating Yen presents an extra element of unpredictability for various assets worldwide as investors’ waning enthusiasm for artificial intelligence takes a back seat. Following its plunge to multi-decade lows earlier in October, the Yen has experienced a surge of approximately 6% against the USD.
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2024-07-25 15:40