The markets are crashing, with both crypto and stocks taking big losses. In the last 24 hours, the crypto market, which was $3.12 trillion earlier, has dropped nearly 7%, with the current valuation of $2.9 trillion, causing panic selling. At the same time, stock markets in the US, India, and Asia are also struggling due to concerns over US trade policies and global economic instability.
From November 2024, when Trump was elected as the next U.S. President, there was a bull run seen in the crypto community, and the crypto market has been up since then with an increasing market cap. But there was a sudden downfall in January when the crypto crash happened and seemed to be the end of the bull run. The market cap has seen a continuous drop since January and it still continues.
Crypto Market Crashes Hard
The crypto market has been wrecked, with $1.48 billion wiped out in just 24 hours. Around 386,737 traders saw their positions erased, with Bitcoin (BTC) alone losing $638.34 million. Most of this, $606.31 million, came from traders who expected prices to go up but were forced to sell at a loss.
Ethereum (ETH) took a major hit, with $301.73 million in liquidations. Out of this, $276.65 million came from long positions traders who expected prices to rise but were forced to sell at a loss.
Solana (SOL) also faced heavy liquidations, with $110.09 million wiped out, while XRP saw $57.94 million in liquidations, mostly from long positions. The biggest single liquidation happened on Binance, where a BTCUSDT trade worth $20.80 million was completely erased.
With almost all major cryptocurrencies deep in the red, investor sentiment is shaky, and many are unsure whether the market has hit bottom or if more pain is ahead.
US Stock Market Also Feels the Heat
It’s not just crypto, US stock markets are struggling too.
The US stock market took another hit, with the S&P 500 slipping 0.50% and the Nasdaq tumbling 1.21% in just a day. Tech stocks, in particular, felt the heat:
- Nvidia (NVDA) dropped 3.09%
- Broadcom (AVGO) slid 4.91%
- Meta (META) lost 2.26%
- Amazon (AMZN) fell 1.79%
- Tesla (TSLA) dipped 2.13%
- Palantir (PLTR) took the biggest hit, sinking 10.53%
Investors are cautious as they wait for Nvidia’s earnings report and assess the impact of US trade policies. The Dow Jones managed to stay flat, but it still faces volatility after suffering its worst week since October.
On February 23, 2025, the US stock market saw a very huge crash as $927 billion was wiped out and people in the community are calling it the worst day of 2025.
Indian Markets Under Pressure
In India, the Nifty fell for the sixth straight session, closing at 22,548, while the Sensex managed to gain 148 points, ending at 74,602. The Nifty Bank index dropped 44 points, and mid-cap stocks suffered heavy losses, with the mid-cap index falling by 311 points to 49,702.
Key stocks that faced losses included: Sun Pharma, Hero MotoCorp, Trent, Hindalco, and Dr. Reddy’s, which dropped between 2% to 3%.
The broader market sentiment remained weak as concerns over US tariffs and global trade uncertainties weighed on investor confidence.
Asian Markets in the Red
Asian markets also opened weak due to pressure from US policies against China. Hong Kong’s Hang Seng Index fell 0.6%, while the Hang Seng Tech Index dropped 1.2%. On the mainland, China’s CSI 300 Index and Shanghai Composite both slipped 0.2%.
In other regions:
- South Korea’s Kospi Index fell 0.4%
- Australia’s S&P/ASX 200 Index managed a slight 0.2% gain
- Japanese markets were closed for a holiday
Why Are Markets Crashing?
The market meltdown is being fueled by growing worries over new US tariffs, a possible global economic slowdown, and uncertainty around big company earnings. Investors are on edge, especially with rising trade tensions between the US and China, which could hurt economic growth worldwide. On top of that, the massive crypto liquidations have triggered panic selling, making things even worse.
Now, both crypto and stock markets are under quite a bit of pressure. While expecting that things may eventually calm down, there is much anxiety over trade policies and the global market keeping things moving. The coming days will see all eyes on key economic statistics and business results for signs of recovery in the market or further downturn.
Also Read: Trump Says China Tariffs “Will Not Stand” Amid Crypto Market Crash
