Bloodbath on Satoshi Street

There's too much blood on Satoshi Street currently, with the broader crypto market crashing by 12.87%. In the last few hours, more than $300 billion has been eroded from the crypto market.

The crypto sell-off intensified in Asian trading hours as Japan's Nikkei crashed another 7% in the early trading hours on Monday, August 5. The recent crash extended the index loss to more than 20% from the July high.

Crypto Market Liquidations Extend to $800M

According to Coinglass data, more than $800 million has been liquidated from the crypto market in the last 24 hours, with most of the liquidations happening in the last 4 hours.

Of them, $700 million is in long liquidations, while $106 million is in short liquidations. The Bitcoin price has crashed over 10%, slipping under $54,500.

On the other hand, the correction in the altcoins space is even deeper, with Ethereum's price dropping by 20% and the rest of the top altcoins correcting anywhere between 15% and 20%.

Worst Sell-off Since FTX Collapse

With investors turning towards risk aversion in the global market, Bitcoin is seeing its worst sell-off since the FTX collapse 2022.

Last Friday, August 2, the Bitcoin exchange-traded funds (ETFs) registered their most significant outflows in the past three months. Now, the bears have the upper hand, with the Bitcoin price falling under its 200-day moving average.

"Central banks have played with fire for years. Now the world is about to be burned," writes famous economist Peter Schiff.

Rising Recession Fears

Expectations of a US recession have shot up significantly, with the probability of a hard landing increasing significantly. Amid the unfolding market scenario, famous economist Peter Schiff writes: "Central banks have played with fire for years.

Now, the world is about to be burned. They kept interest rates artificially low, blowing up a global debt bubble. But as inflation reared its head, rising rates pricked that bubble. Now it's time to pay the piper. The game is over."

Stock Index Futures Tank

Amid the current rout in the tech market and the uncertain global macro conditions, the US stock index futures also tanked considerably during the Monday correction.

Additionally, rising geopolitical tensions between Iran and Israel are adding fuel to the already weak market. The cryptocurrency market will certainly feel the heat of risk-averse bets in the future.