In the early morning of April 13, a large-scale liquidation occurred in the virtual currency market. The price of Bitcoin plunged by more than $2,000 in a short period of time, from a high of $67,100 to below $65,000.
CoinGlass data shows that within 24 hours, a total of 296,300 people in the virtual currency market were liquidated, with a total liquidation amount of up to $920 million (about RMB 6.658 billion)
At the same time, the U.S. stock market was also hit hard. On Friday local time, the Dow Jones Industrial Average fell 1.24%, the Nasdaq Composite Index fell 1.62%, and the S&P 500 fell 1.46%. Bank stocks performed poorly, and JPMorgan Chase's stock price plummeted 6.43%, the largest drop since June 2020.
Larry Fink, CEO of BlackRock, the world's largest asset management institution, expects the Federal Reserve to cut interest rates once or twice this year at most, and curbing inflation will face huge challenges. Amid the turmoil in the financial market, gold prices have experienced violent fluctuations.
London gold once hit a record high of $2,431, but suddenly fell at the end of the trading day and finally closed down 1.39%. International oil prices and the US dollar index also fluctuated sharply, and investors remained highly concerned about the tension in the Middle East.
At the same time, many countries advised citizens to avoid traveling to Israel, Iran and other countries. US President Biden also warned Iran not to attack Israel and said that the United States would support Israel's defense. These events further exacerbated the uncertainty in the global financial market.
In the virtual currency market, the plunge in Bitcoin is not an isolated case. Mainstream virtual currencies such as Ethereum, Dogecoin and Sol Coin have also suffered heavy losses, with declines of more than 9%, 13% and 14% respectively. At the same time, the US dollar index rose sharply, mainly driven by safe-haven buying and the postponement of interest rate cut expectations.
Investor sentiment has been severely affected by the turmoil in financial markets and geopolitical tensions. Many CEOs have expressed concerns about inflation, and financial reports show that large banks are also facing interest rate challenges. The net interest income of JPMorgan Chase, Wells Fargo and Citigroup all fell month-on-month, and large financial stocks fell across the board, further exacerbating market concerns.
Analysts pointed out that the current market turmoil and tensions in the Middle East will continue to affect the global financial market. Investors need to pay close attention to market dynamics and make prudent decisions to avoid risks. At the same time, governments should strengthen market supervision and risk prevention to ensure the stability and sustainable development of the financial market.
