The market could collapse 75%
Global financial markets are in turmoil as Bitcoin (BTC) liquidations are increasing significantly, in parallel with a notable drop in the S&P 500 index. This situation has raised concerns about a possible major financial crisis, with some analysts predicting a 75% drop in markets.
Bitcoin liquidations soar as S&P 500 falls
Bitcoin, often considered a safe haven, has not been immune to recent market volatility. In fact, Wall Street experienced a real meltdown on Tuesday with the S&P 500 correcting by over 2%. In response, the BTC price dropped by 4.5%, reaching levels of $56,500, triggering a surge in bitcoin long liquidations. According to one expert, $246.64 million in leverage could be liquidated if BTC falls below $56,840.
This situation is due to fears of a global recession, disappointing economic data, growing geopolitical tensions and monetary policy decisions by major central banks, including the FED, which directly influence financial markets.
For investors, this increased volatility represents both a risk and an opportunity. Bitcoin liquidations, for example, can lead to significant losses for those holding long positions. However, they can also offer buying opportunities at lower prices for long-term investors.
Forecasts and perspectives
The outlook remains uncertain. Bitcoin's current weakness could signal an imminent correction for the S&P 500. If this prediction comes true, markets could experience a 75% drop, with global economic repercussions.
The current situation in financial markets requires increased vigilance from investors. The correlation between Bitcoin liquidations and the fall of the S&P 500 underlines the importance of closely monitoring economic and geopolitical developments. Only time will tell whether these pessimistic forecasts will come to fruition, but one thing is certain: caution is essential in such a volatile environment.
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