Crypto And Stock Market Panic Sets In

---

Bitcoin lost more than $12k since Sunday as the crypto market and tech stocks suffered a major selloff. Whereas yesterday afternoon’s drop was still manageable, by this morning major European stock markets, crypto markets and US futures are all sharply down.

At the time of writing, Bitcoin is trading near $48k on CoinMarketCap. Other top ten cryptos are some 20% down in what is seen as major capitulation.

Yellen and regulators

The saying goes that you should never try to catch a falling knife and thus traders seem worried as to when the fall on the crypto markets, which started Monday morning and continued with US Treasury Secretary Janet Yellen’s comments in the afternoon that indicated her department could demand regulatory overview over crypto markets, would stop.

#bitcoin crashed, back to its ATH 5 days ago, at $50,000.

— CZ 🔶 Binance (@cz_binance) February 23, 2021

At the time of writing, Ethereum and Litecoin are both down 20%, Binance Coin 21% and XRP 24%. Chainlink saw an even greater loss at 26%. One of the biggest losers is Zilliqa which dropped over 30%.

There are almost no winners, except for NEM and some lesser known coins.

On social media, many crypto fans claimed they would buy the dip whilst others will have a nasty surprise waiting for them when they wake up in the US this afternoon.

Nasdaq and European stock markets

The tech-laden Nasdaq pushed European stock markets down yesterday and it seemed as if the tech bubble which everyone had been warning about for weeks was ready to pop yesterday. In the end the losses were subdued and the Nasdaq ended down only 2.46%.

The industry-heavy Dow Jones meanwhile ended the session flat.

This is the 20% DeFi dip you were waiting for that you’re not going to buy. https://t.co/GHhrQeHSlv

— Ryan Selkis (@twobitidiot) February 23, 2021

Over in Europe Tuesday’s session saw greater losses. The Dutch AEX was down 1.80% at the time of writing and Germany’s Dax 1.20%. France’s CAC seemed to stem the losses at this point and was only down 0.20%.