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Our analysis of the situation
Once in a while, the global financial markets decide to throw a wild party, and we all get invited. This week, the United States tech stocks hosted the party, only to stumble and spill their punchbowl onto the otherwise serene crypto market.
Wall Street's downward slide sent shockwaves across the digital asset landscape. Bitcoin, the undeniable star of the show, found itself down over 3%, slipping to $64,000 levels. The gossip from insider sources revealed that over $290 million in liquidations took place in the broader crypto market, and we all know what happens at these parties—no one wants to be caught holding the bag.
In the corner, the popular crypto exchange Binance saw the highest liquidations at a whopping $118 million, with a staggering 88% in long trades. Meanwhile, across the room, OKX and Huobi, popular crypto exchanges in Asia, were not immune, witnessing 94% long liquidations—all the tears and heartbreak were almost palpable.
The real drama unfolded when the tech shares, the "Magnificent 7," took a tumble, losing over $750 billion in market cap. Benjamin Celermajer, co-chief investment officer at Magnet Capital, quipped, "It mainly seems that after a bad night for equities in the US, crypto, like most asset classes, is feeling a little bit of a flow-on effect in sentiment." It seems like when the popular kids fall, everyone feels the impact.
But wait, there's more! It turns out this spill had an after-party in Japan, as the Japanese Yen staged a comeback, triggering major liquidations across equities, gold, and Bitcoin. The Yen's growing strength has really stirred the pot, causing added volatility across the globe. Talk about gate-crashing the party!
The sobering reality check didn't stop there as Ethereum faced an even steeper correction, with the price slipping 8% to $4,150 levels. The news of the ETF launch seemed to be a sell-the-news pressure on the Ether price. Let's just say even the after-party didn't quite live up to expectations.
As we nurse our hangovers from this wild financial fiesta, it's a good reminder that what happens in one corner of the market inevitably ripples through the rest. So, as we brush ourselves off and wait for the next invite, let's raise a glass to the unpredictable, topsy-turvy world of finance – where fortune truly favors the bold... and sometimes the lucky. Cheers to the party animals of Wall Street and the renegades of the crypto universe!
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Image(s) are provided by Loremflickr or other free sources. They are illustrative and may not represent the content truly.
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Please, behave!