Summary
- Bitcoin fell at $49,000 today.
- Stocks and crypto have dropped as investors are panic selling.
A wave of financial collapses in multiple markets is happening across the world, hinting at a potential Black Swan event or at least a Black Monday.
As the global sell-off deepened, stocks and crypto plunged, and investors started to panic.
Bitcoin‘s price dropped by over 18% in 24 hours, reaching prices below $50,000.
According to data from CoinGlass, BTC saw almost $273 million in liquidations in the past 24 hours.
As noted by Bloomberg this morning, Bitcoin is under pressure from a bout of risk aversion in global markets that saddled the largest digital asset with its heftiest weekly loss since the collapse of the FTX exchange in 2022.
The Intensifying Global Crash
The global stock market is also crashing, and Bloomberg reported that Nasdaq 100 contracts fell more than 2.6%, at 7 AM today.
At the same hour, Malaysian ringgit surged more than 2% and Japan’s Topix Index was down around 6% at that time according to the publication.
Bloomberg’s TV David Ingles noted info on X about the financial context:
Less than an hour ago, he wrote that Japan is 11% down.
The Bank of Japan has raised interest rates for the second time in 17 years, a move that has significant implications for global markets.
A lot of traders and firms have leveraged the low borrowing costs in Japan to invest in higher-yielding assets elsewhere, especially in US stocks.
The strategy is called the Yen carry trade and is now facing severe pressure due to increase cost of borrowing and the strengthening of the Yen against the US dollar.
The demand for the Yen is increasing, strengthening the currency, and this creates a cascading effect, forcing firms to liquidate positions, and boosting the turmoil in the market, as noted by Wesley Kress, financial analyst.
The world is seeing increased pressure from the street riots in the UK as well, together with the escalating conflict between Iran/Israel that is building up.
Donald Trump also shared his thoughts via social media about the world’s financial state of the market:
Meanwhile, noting all that is happening in the markets, Rich Dad Poor Dad author, Robert Kiyosaki, tells investors to be smart, and while “the cowards are quitting” to remain calm, and invest.