Financial stocks

Bitcoin Plunges Overnight, 290,000 Liquidated as Global Financial Markets Roil

In the early hours of April 13th, a massive liquidation event hit the cryptocurrency market, with the price of Bitcoin plummeting by over $2,000 within a short period, dropping from a high of $67,100 to below $65,000. According to CoinGlass data, a total of 290,000 individuals were liquidated in the past 24 hours, with liquidations totaling $920 million. This event not only rattled investors but also underscored the volatility and risks inherent in the cryptocurrency market.

Simultaneously, the U.S. stock market also faced significant losses. On Friday, the Dow Jones Industrial Average dropped by 1.24%, the Nasdaq Composite Index fell by 1.62%, and the S&P 500 index declined by 1.46%. Particularly, bank stocks performed poorly, with shares of JPMorgan Chase & Co. (JPM) plunging by 6.43%, marking the largest decline since June 2020. Larry Fink, CEO of BlackRock, the world’s largest asset management firm, anticipates that the Federal Reserve will only cut interest rates once or twice this year, and the Fed will face significant challenges in curbing inflation.

Amid the turmoil in financial markets, gold prices also experienced dramatic swings. Spot gold in London surged by over 2%, reaching a historical high of $2,431 per ounce, but plummeted sharply towards the end of the session to close at $2,343.78 per ounce, down by 1.39%. International oil prices also fluctuated significantly, with New York crude oil futures prices rising by over 3% intraday but ultimately closing up by 0.51%. Meanwhile, the U.S. dollar index surged significantly, rising by 0.7% for the day.

Investors are closely monitoring developments in the Middle East’s tense situation. Recently, several countries including France and India have advised their citizens against traveling to countries such as Israel and Iran. Additionally, U.S. President Biden issued a warning to Iran, urging them not to attack Israel and stating that the U.S. would assist Israel in its defense. These series of events have heightened uncertainty in global financial markets.

In the cryptocurrency market, besides the sharp decline in Bitcoin, other major cryptocurrencies also suffered losses. Ethereum’s decline exceeded 9%, Dogecoin fell by over 13%, and Solana dropped by over 14%. Meanwhile, the U.S. dollar, which has an inverse relationship with Bitcoin prices, surged significantly. The substantial rise in the U.S. dollar index was primarily driven by safe-haven buying and expectations of delayed interest rate cuts.

Against the backdrop of market turmoil and geopolitical tensions, investor sentiment has been severely impacted. Several CEOs have expressed concerns about inflation, and the latest financial reports indicate that even the largest banks are facing higher rate challenges. Key interest income metrics for JPMorgan Chase & Co., Wells Fargo & Co. (WFC), and Citigroup Inc. (C) all saw declines quarter-over-quarter. Furthermore, the broad decline in large financial stocks has further exacerbated market concerns.

Analysts suggest that the current market volatility and Middle East tensions will further influence global financial market trends. They advise investors to closely monitor market dynamics and make prudent decisions to mitigate potential risks. Additionally, governments around the world need to take measures to strengthen market supervision and risk prevention to ensure the stability and sustainable development of financial markets.

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