Author:ardizor
Compiled by: TechFlow
This historic crash will be remembered as:
$BTC -25%
$ETH -35%
$SOL -30%
Here’s a look at what happened over the past 48 hours, the events leading up to the crash, and what you can do to protect your crypto assets now.
Today is definitely not a "good morning" day.
Once again, Mr. Market shows us how quickly things can change.
As an investor or trader, you should never get too comfortable.
The market can strike at any time and you may lose almost everything.
The Fear & Greed Index could fall further tomorrow.
As I write this, the market is correcting, but in the long run, this is good for us.
At times like these, the words of our wise grandfather, Buffett, still apply:
“Buy when the market is turbulent and blood is flowing, even if that blood is your own.”
So, let’s take a look at where we are now.
What happened in the past 48 hours and what to do if you feel lost.
The current situation:
① The S&P 500 fell 4% today, wiping out $2.1 trillion in market value at the open:
This is the first time this has happened since 2020.
In other words, the S&P 500 wiped out twice the value of $NVDA in just 14 days.
Shocking numbers.
② Just looking at the cryptocurrency prices, you will feel dead inside:
The lowest price of BTC on Binance is $49,577
ETH’s lowest price on Binance is $2,116
In the past 24 hours, we have witnessed one of the biggest crashes since last year.
③ Liquidation situation is similar to the COVID and FTX period:
There are almost no long positions and shorts dominate the market, as can be seen from the liquidation data.
However, it is worth noting that this metric can change rapidly.
④ @jump_ is selling off their assets:
You can check out the sell-off here.
They began selling with almost no market liquidity and have sold more than $310 million worth of ETH.
⑤ Geopolitical tensions between Israel and Iran are growing:
It is reasonable to speculate that the situation will not end easily, and Iran's response may coincide with important dates in Israel, such as the holy day of Tisha B'Av on August 12-13. The Jerusalem Post, one of the largest media in Israel, reported on this.
Why can't people just live in peace?
⑥ Japanese stock market faces historic losses:
The Nikkei 225 index, similar to the S&P 500, fell 13% in a single day.
It is now down more than 25% from its peak.
Meanwhile, the Japanese yen remains strong, which is a negative for the market.
⑦ Robinhood suspends trading, Charles Schwab's trading platform has problems:
⑧ The U.S. Federal Reserve may hold an emergency meeting:
They could implement a -50bp rate cut immediately after the meeting.
The market is pricing in a 60% chance of an emergency rate cut, but I still think that is unlikely.
⑨ Nomad hackers used stolen $DAI to buy $ETH:
See tweet for details.
Now, let’s get to the most important part.
What you can do in this situation, and how to protect your assets and mental health:
Don’t sell at the bottom, even if you’re anxious about crypto.
Waiting for market consolidation or sentiment shift. Focus on $BTC first, then $ETH. Others can wait.
Avoid using margin, leverage, contracts, loans or credit. Stick to spot trading to survive.
Don't rush to recoup your losses. Cryptocurrency is a long-term game.
Get enough sleep, exercise, and spend time with your family.
Choose strong altcoins, relax, and you will forget about it all in a month.
We should all stick together.
Storms will always come, but the dark clouds will always disperse, and there will be a rainbow after the storm.
