Bitcoin (BTC-USD) Plunges Below $50,000, Ethereum (ETH-USD) Nosedives Amidst Crypto Carnage

On Monday, Bitcoin dropped to its lowest level since mid-February, touching $49,112 before recovering to nearly $53,000. The slump comes amid rising tensions in the Middle East and global economic jitters.

Bitcoin and other cryptocurrencies crashed on Monday, as investors dumped riskier assets amid broader market jitters and fears of a global recession.

Bitcoin fell to its lowest level since mid-February, dropping to $49,112 before recovering to trade at around $53,000. The world’s largest cryptocurrency fell for a fourth day in a row.

At the time of writing, Bitcoin is trading at $52,630, down 13.26% over the past 24 hours.

Meanwhile, ether also took a nosedive, falling to $2,060. According to CoinDesk, on-chain sleuth SpotOnChain pointed out that Jump Trading’s potential liquidation could be behind this, noting a wallet transfer of 17,576 ETH, valued at over $46 million, to centralized exchanges.

This is a rare move and could have rattled the market.

At the time of writing, ETH is trading at $2,321, down a whopping 20% over the past 24 hours.

The selloff led to over $1 billion in liquidations in the crypto futures market, with Ethereum seeing $350 million in liquidated bets.

The crypto fear and greed index, which gauges market sentiment, hit its lowest level since early July, indicating “fear” as investors panicked.

Broader markets also took a hit, with the Nikkei 225 in Japan dropping 12.4% and the Stoxx Europe 600 falling 2.8%. In the U.S., the S&P 500 (SPX) fell 2.9%.

These declines come as part of a broader fall in financial markets, driven by fears of a global recession. The NASDAQ also wrapped up its worst three-week stretch in two years, with Amazon (AMZN) and Nvidia (NVDA) taking heavy hits.

Moreover, new trade data from China and Taiwan, as well as central bank decisions in India and Australia, had investors on edge.

In the U.S., the Federal Reserve’s decision to hold interest rates steady also didn’t help, dashing hopes for a rate cut that many had factored into their projections.

With $270 billion being wiped out of the crypto market in just 24 hours, the fallout will be felt far and wide, especially after the SEC recently approved new spot exchange-traded funds for Bitcoin and Ethereum.

This serves as a stark reminder of just how volatile the crypto world can be.

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