Stock Market’s $1.05 Trillion Wipeout Puts To Test Bitcoin Stability

In
a
single
day,
$1.05
trillion
was
wiped
out
of
the
US
stock
market.
This
decline
represents
one
of
the
largest
of
any
single
day
in
recent
times
and
also
reflects
a
mix
of
unsatisfactory
economic
data
and
huge
struggles
among
major
companies.

Investors
are
understandably
rattled
because
this
downturn
brings
up
some
seriously
unsettling
questions
about
the
stability
of
this
market.

Stock
Market:
Economic
Data
Drives
The
Decline

The
Dow
Jones
Industrial
Average
plummeted
more
than
626
points
right
off
the
bat
within
the
first
seconds
of
the
opening.
At
close,
it
shed
more
than
700
points
and
ended
down
over
2%
at
about
40,936.93.

This
sell-off
was
catalyzed
by
weak
manufacturing
data,
a
fifth
consecutive
month
of
contraction.
Investors
were
rattled
by
this
news,
and
that
eventually
led
to
massive
sell-offs
across
the
board.

The
S&P
500
also
lost
around
2.4%
to
close
at
approximately
5,530
points.
Technology
was
worse
hit
in
its
period,
especially
Nvidia,
the
shares
of
which
tumbled
by
9.5%.
This
is
the
biggest
one-day
share
fall
for
any
American
company,
which
erased
an
astonishing
$279
billion
off
its
market
value.

Crude
oil
fell
back
to
$72.66
a
barrel,
reflecting
further
concerns
over
global
demand
and
adding
to
the
market’s
tribulations.

US
Stock
Market
value
lost
$1.05
trillion
today.
Crypto
remained
relatively
stable.

pic.twitter.com/mO6xdCGkni

—
MartyParty
(@martypartymusic)

September
3,
2024

Nasdaq,
The
Hardest
Hit

The
Nasdaq
Composite
was
the
weakest
among
the
majors,
falling
nearly
3.5%
to
17,136.30.
That
was
its
worst
day
since
early
August.
Because
the
Nasdaq
is
overweight
in
technology
stocks-
even
more
so
after
the
collapse
of
Nvidia-
it
sustained
heavy
losses.

As
the
tech
stocks
continue
sliding,
investors
are
left
to
guess
just
how
much
further
that
may
last
and
what
it
could
mean
to
the
broader
market.

Image: Daily Sabah

Impact
On
Cryptocurrencies

Curiously,
as
the
stock
market
was
going
haywire,
cryptocurrencies
like
Bitcoin
and
Ethereum
somewhat
remained
resilient.
Bitcoin
shed
3%
of
its
value,
while
Ethereum
went
below
US$2,500.

History
would
also
show
that
September
has
been
the
most
trying
month
for
stocks
and
cryptocurrencies.
It
usually
sees
increased
volatility
from
traders
who
prepare
for
monthly
economic
reports
and
interest
rate
changes.

BTC market cap currently at $1.16 trillion. Chart: TradingView.com

Bitcoin
Market
Cap
Steady

Despite
the
downturn
these
days,
Bitcoin’s
market
capitalization
is
still
faring
healthy
at
around
US$1.2
trillion,
with
a
year-over-year
return
of
128%.

The
short-term
outlook
is
quite
bleak,
but
some
analysts
cautiously
say
a
recovery
could
be
in
the
cards.
They
peg
their
optimism
on
the
upcoming
elections
in
the
United
States
and
the
planned
disbursal
of
$14.5
billion
to
FTX
creditors.

However,
everything
depends
on
what
is
going
to
be
reported
about
future
economic
data.
In
case
weak
reports
continue,
then
more
pain
might
be
in
store.

But
what
really
emphasizes
a
higher
magnitude
of
uncertainty
is
the
$1.05
trillion
loss
the
US
stock
market
had
to
incur.
As
investors
try
to
work
their
way
through
the
ramifications
brought
about
by
weak
economic
data
and
major
declines
in
key
companies,
all
eyes
are
on
the
next
set
of
reports
and
political
affairs
that
come
out.

Obviously,
some
feel
a
bottom,
but
ahead
of
them
are
challenges,
and
how
long
it
will
actually
take
for
this
sector
to
climb
out
of
its
hole
is
anybody’s
guess.

Featured
image
from
TipRanks,
chart
from
TradingView