The end of last week brought some unfavorable circumstances. Now, Bitcoin is down, crypto markets are down, and traditional finance markets are trading in the red—well, except for defense stocks. A note from The Kobeissi Letter to investors this morning advises, “Don’t fear bear markets; welcome them.” However, is that doable?
Bitcoin loses the bull run
The crypto market has lost 16% of its capitalization in 24 hours. The global crypto market cap sits at $1.93 trillion today, down 13.85% in the last 24 hours. At the time of this writing, Bitcoin’s value sits at $51,829, down 14.6% in the last 24 hours and 25.5% in 7 days.
The second-largest crypto coin, Ethereum (ETH), is currently trading at $2,286.03, down 21.5% in 24 hours and 32.5% in 7 days. To that end, on-chain data from Coinglass shows that 282,966 traders have been liquidated in the last 24 hours, bringing total liquidations to $1.08 billion. The largest single liquidation order happened on Huobi—BTC-USD value $27.00M.
Why? Japanese stocks collapsed on Monday, their biggest loss since the 1987 Black Monday sell-offs.
The collapse is driven by last week’s dip in global stock markets and economic worries tied to the recession. The Nikkei share average shed 12.4%, bringing in fears tied to the October 1987 crash.
In addition, U.S. stock index futures tumbled today, with those tied to the Nasdaq falling nearly 4%. Apple Inc. tanked 7.3% after Berkshire Hathaway sold almost 50% of its stocks. Also, Nvidia fell 6.8% following news of a delay in the launch of its next AI chips due to problems with design.
Also Read: Daily Crypto Update: Bitcoin, Ethereum, and top assets fall significantly
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