Bitcoin and Ether prices plunge, triggering $1 billion in liquidations as market sentiment turns fearful amid recession fears and geopolitical tensions.
Bitcoin (BTC) and Ether (ETH) faced significant declines, with Bitcoin falling below $50,000 and Ether experiencing its worst single-day plunge since May 2021. The sharp downturn in the crypto market has led to widespread liquidations and a shift in investor sentiment toward fear.
Key Points:
Bitcoin dropped below $50,000 during Asian trading hours, hitting a low of $49,267 before a slight recovery.
Ether fell to $2,166, marking a nearly 25% drop and its steepest single-day decline since May 2021.
The CoinDesk 20 index, which tracks the most liquid non-stablecoin tokens, fell nearly 20%.
Over $1 billion in crypto futures were liquidated, with Ether alone accounting for $350 million in liquidated positions.
Rumors of Jump Trading liquidating assets, including a transfer of 17,576 ETH to centralized exchanges, exacerbated the sell-off.
The crypto market downturn is linked to broader financial market declines due to global recession fears and rising tensions in the Middle East.
The Crypto Fear and Greed Index fell to its lowest level since early July, indicating heightened fear among investors.
The recent plunge in Bitcoin and Ether prices highlights the volatility and sensitivity of the crypto market to broader economic and geopolitical factors. As investor sentiment shifts to fear, the market may face further challenges in the near term.
Source: Coindesk
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