Recent market turmoil is notable:Bitcoin dropped 25%, Ethereum fell 35%, and Solana is down 30% in just 48 hours.
Here’s a breakdown of the events leading to this downturn and what steps you should consider to safeguard your crypto investments
:1. The S&P 500 fell 4% today, erasing $2.1 trillion in market value. This is the largest drop since 2020, equivalent to wiping out twice the market cap of Nvidia in just 14 days.
2. Bitcoin hit a low of $49,577 and Ethereum dropped to $2,116 on Binance, marking one of the most significant dumps we've seen this year.
3. Liquidation levels are high with short sellers currently dominating, similar to past crises like COVID and FTX. However, this can change quickly.
4. Rising tensions between Israel and Iran could escalate, particularly around significant dates like Tisha B'Av on August 12-13.
5. The Nikkei 225 plummeted 13% in a single day and is down over 25% from its peak, with a strong Yen exacerbating the situation.
6. Robinhood has halted trading, and Charles Schwab's platform is experiencing problems.
7. There’s speculation about an emergency rate cut by the Fed, though it seems unlikely at this moment.
8. Nomad hackers are using stolen DAI to buy Ethereum, adding to market volatility.What to do next:- Avoid selling at the bottom, even if stressed.
- Wait for market consolidation or sentiment shift before making moves, focusing on Bitcoin and Ethereum first.
- Avoid margin and leverage trading. Stick to spot trading.
- Be patient and don’t rush to recover losses. Crypto investments are long-term.
- Take care of your well-being: get enough sleep, exercise, and spend time with loved ones.Stay calm and navigate the market wisely.
