Flash Crash 10 AM: Bloodbath in Crypto, Wall Street Celebrates
The crypto market has experienced a severe shock in the last 4 hours that wiped out market capitalization by up to $60 billion. Ironically, this happened just as the US stock market showed a very contrasting performance.
Key points of this event:
Massive Liquidation: A sudden drop in Bitcoin price of $2,500 triggered a domino effect that liquidated long positions (investors betting on price increases) worth $82 million.
The "10 AM Manipulation" Phenomenon: The trading community highlights a pattern of declines that often occur right at market opening times or specific sessions (10 AM), which is often seen as manipulation by large institutions to hunt for liquidity.
Decoupling from Stocks: While crypto was bleeding, the US stock index actually added market value of $465 billion today. Technology stocks and the S&P 500 continue to pump prices close to new all-time highs.
Global Wipe Out: This decline caused the total market capitalization of crypto to plummet, creating a momentary panic for retail traders utilizing high leverage.
Brief Analysis: This event underscores that the correlation between Bitcoin and the stock market is in a "Break" (Decoupling) phase. Crypto is undergoing a leverage flush out, while big capital seems to prefer entering US equities to chase the year-end rally.#USCryptoStakingTaxReview #TrumpTariffs #USJobsData #BTCVSGOLD #CPIWatch $BTC
