$250 Billion Wiped Out from Crypto Market Cap Today Amid Slump
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- $250 billion wiped out due to the crypto market crash.
- A significant dip in market sentiment observed.
- US stocks, including leading tech companies like Nvidia and TSLA, also experienced losses.
- CEOs of investment banks warn of a possible pullback in stock prices.
Table of contents
Cryptocurrency Market Dips
Today the entire crypto market saw a significant decline, with a whopping $250 billion wiped off. The mass market slump was particularly harsh on AI and other tech companies. According to CoinGlass, crypto liquidations in the last 24 hours have shot up to $1.37 billion.
There was a visible decline in market sentiment as well, identified by the annualised futures premium on major exchanges dropping from around 7% to below 4% this past week. While the market seemed to dip, it's noteworthy to mention that trading activity remained high, suggesting investors might be cashing in on the market slump. The slump in major crypto assets like ETH and XRP resulted in an increase in BTC dominance.
US Stock Market
In addition to the crypto market, the US stock market also faced significant losses today. Over $730 billion was wiped out, and leading tech stocks like Nvidia and TSLA took the biggest hit with dips exceeding 4%. Even the substantial quarterly results of defense company Palantir, beating Wall Street estimates, failed to negate the market's negative mood. One other factor impacting the market is possibly traders' anxiety due to the tumble in Palantir shares, which have soared by more than 160% this year, falling by more than 8%.
Warnings from CEOs of Major Investment Banks
Overnight comments from the CEOs of two leading investment banks, Goldman Sachs’ David Solomon and Morgan Stanley’s Ted Pick, also caught traders' attention. Both warned of a potential pullback in stocks. "We should welcome the possibility that there would be drawdowns, 10% to 15%, that are not driven by some sort of macro cliff effect," said Pick on Monday night.
Frequently Asked Questions
What Caused the Crypto Market Slump?
The mass-market slump impacted the cryptocurrency market. Trade remains active, suggesting some investors might be cashing in on the dip.
What Happened to the Stock Market?
The US stock market also took a significant hit, with over $730B wiped out. Both Nvidia and TSLA stocks dipped over 4% each.
What is the Outlook for the Stock Market?
CEOs of major investment banks, including Goldman Sachs and Morgan Stanley, warn of a possible pullback in stock prices. Traders are advised to be wary of potential drawdowns not driven by macroeconomic effects.
