Stock market today: S&P 500 hits fresh record close on stronger economic growth
U.Today - The cryptocurrency market is facing selling pressure, with nearly $1 billion in liquidations across various assets in the past 24 hours, per Coinglass data. The stock market also saw a similar decline, with legendary trader Peter Brandt weighing in on the current market situation.
Bitcoin (BTC) has seen yet another price reversal, filling in Friday’s CME gap and trading at $83,540, down nearly 10% in the last 24 hours. Meanwhile, the Nasdaq 100 has fallen about 10%, and another similar plunge would signal a bear market.
In a tweet, Brandt makes a "comment on current markets (BTC, stocks)," stating that the " volatility of the past week represented the chance to make a lot of money or lose a lot of money. " He stated his dislike for "trading such volatility because ’lose a lot of money’ is a binary alternative. Trading is a marathon, not a sprint."
Brandt’s statement highlights a key principle in trading: high volatility can be both an opportunity and a trap. While some traders may have profited from wild price swings, others suffered significant losses, highlighting the importance of risk management and long-term planning.
Market sell-off
The crypto market faced a brutal sell-off in the early Tuesday session, continuing the sell-off from Monday. Practically all cryptocurrencies in the top 100, save stablecoins, were in the red, with several suffering double-digit losses. In the last 24 hours, over $978 billion worth of crypto derivatives were liquidated; bullish bets accounted for the majority at $833.71 million, while shorts liquidation reached $144.46 million.Sunday’s announcement of a crypto strategic reserve that would include ADA, XRP and SOL, alongside Bitcoin (BTC) and Ethereum (ETH), sparked a market frenzy. ADA surging more than 60%, XRP climbed 33% and SOL surged 22% immediately thereafter. Bitcoin and Ethereum surged alongside the rest of the cryptocurrency market.
The initial excitement, which saw several cryptocurrencies posting gains, was short-lived due to profit-taking and a risk-off mood in the broader equity markets. The sharp reversal also aligned with a cautious mood among traders.
Amid the ongoing sell-off, Tom Lee, Head of Research at Fundstrat, believes the broader market may be nearing a bottom, possibly as soon as this week.