The post Blood-Shed in Satoshi’s Street: Crypto Market Tearing Apart as Global Markets Crash! What Went Wrong? appeared first on Coinpedia Fintech News
The crypto market is down today! The star token Bitcoin, has faced severe selling off, not seen in the past few months. The drop of over 18% since the start of the month suggests the crypto winters have advanced pretty well, which has shaken up the entire crypto space. Many reasons have emerged which has fueled the fear among the market participants,
Japan’s rate hike of 25 basis points in interest spiked all risk assets including Bitcoin & Ethereum, which dropped by over 12% and 22% respectively. Japan has been witnessing one of the worst losses since 1987. The Nikkei is selling off at a double top of the peak of the real estate bubble from 34 years ago. This has been speculated as an even larger drop than the ‘Black Monday’ crash of 1987.
A wave of financial collapses has been occurring across all the markets in the world which compels us to think about whether it is a Black Swan event or a Black Monday. Besides, South Korea has halted all sell orders while the Magnificient 7 stocks of the United States have erased nearly $500 billion overnight. Besides, the employment rate in the US has also dropped due to which the possibility of a recession has emerged in the state.
What’s Next for the Crypto Markets? Will Bitcoin Recover?
Regardless of the fears prevailing within the markets, the bulls and the retail traders are finding an opportunity to jump in. The social sentiments have spiked up in discussions about the right time to buy at the dip. However, the data from the Santiment reveals the levels remain under the required limit and hence a bigger drop could be expected when the US markets wake up!
“Discussions about buying have spiked, but not as much as you may think on such a dramatic drop. Expect for the bigger reaction to come as the US wakes up for their Monday morning shock. Emotional selloffs will only accelerate the timing of crypto’s rebound,”
The current market sentiments are extremely bearish, which is seen in the fear & greed index plunging close to 40. As the markets have plunged euphorically, a rebound is also expected after the sentiments rise from being heavily bearish to neutral. Although the buyers are utilizing the opportunity, the markets may remain under bearish influence for some time ahead.