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Bitcoin Plummets to $50K Amid 'Perfect Storm' in Crypto Market
Summary: Bitcoin experienced a dramatic crash to $50,000 as a 'perfect storm' hit the crypto market. Over the weekend, Bitcoin (BTC) fell below $60,000, eventually dropping to $49,300 during Monday's Asian morning trading as investors exited risk assets. Bitcoin is now down nearly 15% in the past 24 hours, though it has slightly recovered to around ...
Bitcoin experienced a dramatic crash to $50,000 as a 'perfect storm' hit the crypto market. Over the weekend, Bitcoin (BTC) fell below $60,000, eventually dropping to $49,300 during Monday's Asian morning trading as investors exited risk assets. Bitcoin is now down nearly 15% in the past 24 hours, though it has slightly recovered to around $52,000. Ether (ETH) faced an even steeper decline, falling 22% to $2,100, its largest one-day drop since 2021. The CoinDesk 20 Index (CD20), a benchmark for the broader crypto market, slid almost 20%, with major cryptos like Solana (SOL) and Near Protocol (NEAR) plummeting by 20%-25%.
The sentiment shift was triggered by Friday’s U.S. economic and jobs data, sparking fears of a recession, compounded by escalating tensions in the Middle East. The Japanese yen surged against the U.S. dollar, leading to a broad unwinding of trades across various asset classes. Asian equity indexes experienced record declines on Monday, with Taiwan's index suffering its worst day in 57 years. QCP analysts noted that crypto trading giant Jump's asset sell-off exacerbated the market decline.
Crypto-related company stocks also took a significant hit as digital asset prices fell. Coinbase (COIN) dropped more than 9% in U.S. pre-market trading, while MicroStrategy (MSTR), known for its substantial bitcoin holdings, lost 13%. U.S.-listed miners Marathon Digital (MARA) and Iren (IREN) both fell nearly 14%, while Hut 8 (HUT) and Riot Platforms (RIOT) dropped 12% and 11%, respectively. Derivatives traders faced massive liquidations due to the price crash, with crypto-tracking futures recording over $1 billion in liquidations in the past 24 hours. Ether futures saw over $340 million in liquidated bets, while bitcoin futures led with $420 million in losses.
Tags: Bitcoin,Coinbase,ETH,NEAR,SOL
Link: Bitcoin Plummets to $50K Amid 'Perfect Storm' in Crypto Market [Copy]