Bitcoin and Crypto Market Sees $800M Liquidated During Global Sell-Off

A sharp decline in the Japanese stock market at the beginning of the week led to an asset sell-off globally. Bitcoin and other cryptocurrencies have plummeted as a result of the Bank of Japan’s decision to tighten monetary policy, as well as a worsening US economic outlook and rising tensions in the Middle East.

As at the time of publishing, Bitcoin had dropped to $54,350 from its recent top of $70,000. According to Coinglass, cryptocurrency dealers have experienced significant liquidations of $800 million on the previous day alone. The cryptocurrency community and investors around the world have been alarmed by this sharp decrease.

US Stocks Follow Suit

The impact isn’t limited to cryptocurrencies. US stock futures have also taken a hit. The Dow Jones Industrial Average futures dropped 383 points, approximately 1%. Similarly, S&P 500 futures and Nasdaq-100 futures declined by 1.17% and 2.12%, respectively.

The US economic outlook appears grim, influenced by a disappointing jobs report. This has heightened expectations that the Federal Reserve might lower interest rates this year. JPMorgan Chase predicts a 50 basis point drop could occur as soon as September.

Further insights into the Federal Reserve’s plans might come on Monday, when San Francisco Fed President Mary Daly is set to speak at a business conference in Hawaii. Her comments could provide crucial guidance on the Fed’s next moves amid these turbulent times.

The combination of Japan’s market plunge, tightening monetary policies, and a grim US economic forecast has created a perfect storm for global markets. Investors and analysts alike are bracing for further volatility as the week unfolds.