- Bitcoin and the S&P 500 moving in tandem amid global market correction.
- The altcoin space goes through its first major correction after weeks of a rally.
The global markets have come under heavy correction today, and so does Bitcoin and the overall crypto space. The entire crypto market is down by 7 percent slipping under $2 trillion levels.
Bitcoin is also down by over 7 percent slipping under its crucial support of $45,000. As per popular crypto analyst Colin Wu, the crypto market correction is an outcome of the crash in Hong Kong’s Hang Seng index that plummeted 7 percent earlier today.
This happened as China’s second-largest real-estate property developer Evergrande Real Estate Group plummeted over 10 percent in the stock market. The analysts reported:
The Hang Seng Index fell 3.3%, its biggest one-day drop in the past eight weeks. Among them, the two Evergrande bonds will usher in the interest payment date on Thursday, and the stock price plunged nearly 19% during intraday trading, setting a new low since June 2010.
Colin wu further noted that the Hang Seng index correction had a broader impact on the global market as well as the crypto market. China’s second-largest real estate company is holding a massive $2 trillion in debts.
The risk of spillover from Evergrande’s debt has made the global market jittery. As of early trade on Monday morning, the Dow Jones futures are also down by 450 points. This coupled with the fears of Fed tapering its easy monetary policy has put the markets under pressure. The below graph from Bloomberg shows that BTC and the S&P 500 have been moving in tandem ahead of the Fed decision.
Altcoins enter heavy correction
Apart from Bitcoin (BTC), the crypto market correction has dragged altcoins even lower. The overall altcoin space has lost more than $120 billion in the last 24-hours.
As of writing this story, all of the top ten altcoins have corrected by more than 10 percent. This is the first major sell-off in the altcoin space after a strong rally over the last few weeks.
Some of the top altcoin performers like Ethereum (ETH), Solana (SOL), XRP, Polkadot (DOT), Avalanche (AVAX) are all down by 10-15 percent. September has relatively been the month of correction over the last decade in the history of the crypto market.
With Bitcoin correcting more than $4000 in the last 24-hours, massive liquidations have ensued across the crypto market. As per data on Bybit, the total liquidations across the crypto market are more than $1 billion in the last 24-hours. The largest single liquidation happened on Bitfinex at $15.3 million.
Of the $1 billion liquidations, BTC liquidation stands at over $70 million while Ethereum (ETH) liquidation stands at more than $38 million. The third-largest liquidation is for XRP who’s the price has now plummeted 12 percent under $1.0.