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Crypto liquidations hit the market hard during unprecedented global selloff
The recent global selloff has caught everyone off guard as investors and traders alike are witnessing a rare occurrence – the simultaneous decline of all major asset classes. The cryptocurrency market is no exception, with most top cryptos experiencing sharp declines.
For instance, Bitcoin (BTC) has slipped by 2.6%, Ethereum by 6.5%, XRP by 2.0%, BNB by 0.9%, Solana by 1.5%, and Dogecoin by 1.9% over the past 24 hours. Despite this, it’s important to note that the total cryptocurrency market cap has at least grown 1.25% above its opening value.
It is crucial to acknowledge the unprecedented nature of this global selloff. Investors are typically expected to shift from risky assets like stocks to safer havens during times of uncertainty. However, we’re seeing something different – instead of finding solace in gold and other traditional safe-haven assets, investors are opting for cash above all else.
Adam Kobeissi, a prominent Twitter personality, has shared an alarming observation that is sending shockwaves through the financial community. He highlighted how this selloff is defying historical correlations by manifesting in a simultaneous decline of stocks, gold, bonds, and oil prices. This kind of coordinated sell-off event is extremely rare.
The CNN Fear and Greed index currently sits at a concerning 4, indicating that investor sentiment has reached an all-time low. It’s worth noting that this fear may create a window of opportunity for investors willing to take bold risks in the face of adversity.
Looking ahead, it will be essential for market participants to keep an eye on global developments and their impact on the cryptocurrency space. While many are choosing to hold cash at present, there is evidence of selective buying within altcoins. This could indicate a possible bottoming process or a sign that some investors are willing to take advantage of these lows.
As always, it is crucial to stay vigilant and watch market conditions closely as this crisis unfolds.
Source: https://coinpedia.org/news/crypto-liquidations-hit-market-hard-during-unprecedented-global-selloff/
