“Crypto selloff wipes out $367 billion in value as bitcoin, ether plunge” [Aug 5 2024]
August 12, 2024
“…Led by a drop of 15% in bitcoin in the past 24 hours and a 22% plunge in ether, the overall value of cryptocurrencies sank by about $367 billion, according to CoinGecko data, the the market recovered some later in the day. The drop in crypto prices led to more than $1.13 billion in liquidations in the derivatives markets, crypto data firm Coinglass says.
The selloff in the crypto market coincided with a broader slide in equities in Asia-Pacific markets. Japan’s Nikkei 225 dropped over 12%, extending losses that began last week, after the Bank of Japan announced it would hike its benchmark interest rate to the highest level in 16 years. It was the worst day for the index since the “Black Monday” crash in 1987…”
During a market crash Bitcoin will crash as well. It’s connect to stocks via ETFs. Also margin calls and panic selling will also cause it to drop during those times. The real question is what is the time gap between the crash and recovery?