Sell first, think later! — Panic drives Bitcoin, Ethereum, and Asian
stocks into freefall
Markets across Asia opened in the red at the start of the week, triggering
a sharp downturn in the crypto market as well.
This wave of panic stems from growing fears over an escalating trade war
sparked by U.S. President Donald Trump's aggressive tariff policies.
Over $890 million in crypto liquidations in 24 hours
Data from Coinglass shows that total liquidations in the crypto market
reached $890.9 million in the past 24 hours — with nearly $758 million
coming from long positions (bullish bets).
This marks a clear sign of widespread investor shock.
Bitcoin dropped to around $78,999, down 5.3% on the day, while Ethereum
plunged 11.8% to $1,596. The GMCI 30 index — which tracks the 30 largest
cryptocurrencies — also sank 8.6%.
Asian stocks in freefall
Japan's Nikkei 225 dropped 8% at the open, triggering a trading halt.
South Korea’s Kospi fell 4.6%.
China’s Shanghai Composite slid 5.8%, and the Shenzhen Component plummeted
7.2%.
Notably, Taiwan’s stock market, reopening after a long holiday, saw nearly
1,000 stocks hit limit-down — including global chip giant TSMC.
"Sell first, think later" mindset takes over
Peter Chung, Head of Research at Presto Research, stated:
“Risk assets like Bitcoin are being affected by a panic-driven ‘sell first,
think later’ mentality. Fear is overpowering rational analysis.”
He also emphasized that three key factors will determine where the market
heads next:
-
The response from other nations,
-
A clear long-term plan from the Trump administration, and
-
Actions taken by the U.S. Federal Reserve (Fed).
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