The cryptocurrency market has been hit hard amid a global stock market selloff, leading to significant losses across major crypto assets. Bitcoin (BTC) has plunged 11% in the past 24 hours, hitting a low of $52,350, its lowest since February. Ethereum (ETH) also took a substantial hit, dropping 19% to $2,350 after falling to an eight-month low of $2,120.
The total market cap for cryptocurrencies fell 12.9% to $1.96 trillion, wiping out more than $292 billion from digital assets. Over 217,000 leveraged crypto traders faced liquidations worth $841.3 million, with ETH and BTC being the hardest hit. The selloff in crypto was driven by a broader market turmoil, particularly violent losses in Asian stock markets. Japan’s Nikkei 225 index dropped 8.6%, leading a wave of declines across regional markets.
This turmoil was exacerbated by the unwinding of Japanese Yen carry trades, a long-standing source of cheap leverage for global investors. The Yen’s sharp rise of 12% over the past month forced many to reassess their strategies. Additionally, weak U.S. jobs data and concerns over prolonged high interest rates have sparked fears of a potential recession in the world’s largest economy. The U.S. stock market futures also suggest further declines, with the tech-heavy Nasdaq expected to open 5% lower today.
For crypto traders, this dramatic selloff is a stark reminder of the volatile nature of the market. Despite recent optimism, particularly surrounding the potential launch of spot Ether ETFs, the sudden downturn underscores the importance of risk management and staying informed about broader market trends.
