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Plus: Huge Bitcoin sell-off shakes markets |
You know those mornings when you spill your coffee and think, "well, this can't get any worse" 🙂 Then you accidentally push the entire cup off the table while trying to clean the spill 🙂 That's what today feels like in crypto. It started with some ugly news out of the stock market - tech companies flopped on earnings, and that made investors go risk-off. Here's why: 👉 Tech is the market's risk-o-meter. Big tech trades on expectations, not just current profits. When they miss - or even hint that future growth might cool - investors take it as a sign that risk assets might be overpriced across the board. 👉 Valuations were already stretched. A lot of AI-adjacent stocks were priced for perfection. So when results weren't perfect, investors didn't wait around - they de-risked. 👉 Risk-off flows hit everything tied to "future upside." Once tech rolled over, the flows spilled into other speculative corners - small caps, startups, and of course, crypto. Crypto is basically the last stop on the risk ladder, so when sentiment flips, it gets hit hardest.
As crypto prices fell, traders who were betting on the market going up got wiped out in an avalanche of liquidations. We're talkin' ~$1.1B worth of long positions getting knocked right over. It wasn't a good day for Bitcoin ETFs, either: they had their second-worst day ever yesterday, with $866.7M in outflows.
These kinds of days feel brutal, but they're part of the cycle: when the market gets too crowded on one side of the trade, it doesn't take much to tip it over. For now, consider it a reset. Prices can stabilize, leverage can rebuild, and the market can find its footing again. Until then... maybe keep the coffee away from the edge of the table 👀
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