Over 805 billion USD has evaporated from the US stock market today.
Bitcoin (BTC): Has lost the $70,000 mark, currently trading around $68,000. After attempts to recover to the $74,000 - $75,000 region failed, selling pressure has returned.
Ethereum (ETH): Dropped sharply (over 5%), falling below the important psychological threshold of $2,000.
Altcoins: The situation is quite bleak as about 38% of altcoins are trading near all-time lows (even worse than the period after the FTX exchange collapse).
2. Reasons
Due to political instability:
- Escalating geopolitical tensions: The military conflict in the Middle East (especially reports of an attack on Iran) has caused investors to panic, pulling out of risky assets like crypto and stocks to move into safe-haven assets such as Gold and USD.
- Soaring oil prices: Crude oil prices have surged (exceeding $93/barrel), raising concerns about inflation returning (stagflation). This puts pressure on central banks to maintain high interest rates, which is the "enemy" of the cryptocurrency market.
- Weak US employment data (NFP): The Non-Farm Payrolls report released on 06/03 was much lower than expectations, showing signs of weakening in the US economy, leading to an overarching "risk-off" sentiment.
- Selling pressure from miners and ETF funds: Reports indicate that Bitcoin miners are ramping up sales to cover costs amid a volatile market. At the same time, Bitcoin ETFs in the US are also experiencing significant outflows.