mass liquidations have reached $1.5B

The crypto market is drowning in a red sea. Most cryptocurrencies have fallen sharply below the price observed at the beginning of this year. We should thank the administration of the 47th US President Donald Trump and his tariff wars.

At the time of writing, the total amount of liquidations on the market within 24 hours reached $1.5 billion. Long positions accounted for the majority of this volume: $1.20 billion.

S&P 500 futures fell by 5.98%, while Nasdaq 100 futures fell by 6.2%. Dow futures fell by 5.5%.

Asian markets are no better off: Japan’s Nikkei 225 fell 8.9% in early trading on Monday. In Taiwan, the Taiex index fell by almost 10%, which led to disruption major stocks, including TSMC and Foxconn.

Meanwhile, volatility index (VIX) futures have exceeded their peak in August 2024.

Retail investors sold $1.5 billion worth of stocks during a 2.5-hour period on Friday, the largest intraday outflow on record.

The S&P 500 futures fell 22% and entered bear market territory. The US stock market has been losing an average of $400 billion per trading day for 32 days in a row.

It is difficult to say what the market will face in the long term. But judging by the sentiment of stock investors, the situation will only get worse in the near future. Last AAII research showed that 61.9% of respondents were downbeat, the third-highest figure on record. Positive sentiment amounted to only 21.8%.

On the other hand, analysis of the crypto market sentiment by Santiment suggests that things may not be so bad. Social media is full of references to the «separation of» cryptocurrencies from stock markets. After the S&P 500 index lost 10.5% at the end of last week, bitcoin and other cryptocurrencies appeared to be fairly insulated from the tariff war. If the crypto market has indeed become less dependent on stock markets, this would be an encouraging sign.

Historically, the most powerful cryptocurrency bull cycles have occurred when there was zero correlation between the two sectors.