Market Overview
In the past 48 hours, we've witnessed:
- $BTC down 25%
- $ETH down 35%
- $SOL down 30%
Key Events Leading to the Dump
1. S&P 500 Plunge:
- Dropped 4%, erasing $2.1 trillion in market cap at the open.
- This is the largest decline since 2020, erasing twice the value of $NVDAâs market cap in just 14 days.
2. Crypto Price Collapse:
- BTC hit a low of $49,577 on Binance.
- ETH fell to $2,116 on Binance.
- One of the most significant dumps we've seen recently.
3. High Liquidations:
- Liquidations are comparable to the COVID and FTX periods.
- Short sellers dominate as long positions are nearly wiped out.
4. Geopolitical Tensions:
- Rising tensions between Israel and Iran, with possible escalation around significant dates like Tisha B'Av.
5. Historic Losses in Japan:
- Nikkei 225 dropped 13% in a single day, now down over 25% from its peak.
- The strong Japanese Yen is exacerbating market issues.
6. Trading Platform Issues:
- Robinhood halts trading; Charles Schwab faces platform issues.
7. Possible Emergency Fed Meeting:
- Markets price in a 60% chance of a -50bp rate cut, though it remains uncertain.
8. Nomad Hackers:
- Stolen $DAI used to buy $ETH.
What You Can Do Now
1. Avoid Panic Selling:
- Donât sell at the bottom, even if stressed about your investments.
2. Wait for Market Stabilization:
- Look for consolidation or a shift in sentiment. Monitor $BTC first, then $ETH. Alts can wait.
3. Avoid Leverage and Margin:
- Stick to spot trading to minimize risk. Avoid using margin, futures, loans, or credit.
4. Take a Long-Term View:
- Donât rush to recover losses. Crypto is a long-term game, and patience is key.
5. Focus on Well-Being:
- Ensure good sleep, regular exercise, and spend quality time with family. Mental health is crucial.
Navigating through this turbulent time requires a balanced approach and mental resilience. Keep calm, stay informed, and focus on long-term strategies.
