- Over $1 billion liquidated in 24 hours, contributing to a 12.87% crypto market drop.
- Nikkei’s 20% decline and fears of a U.S. recession amplify bearish sentiment.
According to data from Coinglass, over $1 billion has been liquidated from the crypto market in the last 24 hours, with $900 million in long positions and $106 million in short positions. This sell-off has contributed to a 12.87% decline in the overall crypto market, erasing more than $400 billion in value.
Following our previous discussion, Bitcoin stalls at $66,000 – Is the Bull Market Over or Will Altcoins Like Ethereum Set New ATH?, some clues come to light. The crash was exacerbated by Japan’s Nikkei index dropping 20% from its July peak, reflecting a broader trend of risk aversion.
As for now, Bitcoin is trading at $50,762.31, a severe dip of 16.27% in the past day and 27.18% in the past week. See BTC Price chart below.
Chart:
Bearish Trends Amid Broader Market Turbulence
It is worth noting that the bearish sentiment is further fueled by fears of a U.S. recession and rising geopolitical tensions, creating a challenging environment for the cryptocurrency market.
Furthermore, an update from CoinMarketCap revealed that the significant correction in both crypto and traditional markets may have been triggered by the Bank of Japan‘s recent interest rate hike. This monetary tightening caused the yen to surge and Japan’s Nikkei stock index to plummet, with the Nikkei falling an additional 6% early Monday.
This brings its total decline to approximately 15% over the past three sessions and 20% from its mid-July peak. Economist Peter Schiff didn’t hold back, saying,
Central banks have played with fire for years. Now the world is about to be burned. They kept interest rates artificially low, blowing up a global debt bubble. But as inflation reared its head, rising rates pricked that bubble. Now it’s time to pay the piper. The game is over.
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