ambcrypto.com 
The crypto market is showing early signs of recovery, but last week’s crash has reshaped sentiment. Currently, overall sentiment has fallen back to ‘extreme fear,’ with strong bearish signals flashing. Similar fear levels were last seen early in the year before sentiment improved to neutral at 50 during Q2.
At press time, the Fear & Greed Index was at 8, while Bitcoin’s [$BTC] reading is slightly stronger at 12, reflecting greater resilience than the broader market.
Source: Alphractal
Additionally, Google searches related to crypto were rising from around 170 to above 320. This trend has intensified the panic in the market even more as searches surge during rallies or at times of market crashes.
This data suggests that this week there could be heavy volatility, but it may be to the downside.
Asian stock market crashes
The Asian stock market crash intensified the panic in the crypto market.
During the Asian session open, South Korea’s KOSPI stock market declined by 8.40% as of writing. This crash triggered a circuit breaker, with Samsung and SK Hynix suffering losses of 8.66% and 5.12%, respectively.
This was the largest single-day wipeout since the 4th of March, with trading halted temporarily in a desperate attempt to mitigate the collapse.
Source: Crypto Rover/X
The KOSPI stock market crash spread throughout Asia, wiping out $1.5 trillion.
Japan wiped out $385 billion, Taiwan wiped out $235 billion, and China liquidated $310 billion. Hong Kong and India lost $108 and $42 billion, respectively.
As the Asian stock market bled, so did the global cryptocurrency market.
Crypto liquidations surge
During this Asian market crash, the market liquidated more than 104,157 traders, with total liquidations reaching $628 million. The largest single liquidation order occurred on Binance’s $BTC valued at $12 million.
According to CoinGlass data, the market wiped out a total of $5.70 billion in long positions in the past week.
Source: CoinGlass
The weakness in crypto markets has been echoed by Dr. Marc Faber, a renowned precious metals investor. He warned that investors are right to worry about paper money losing purchasing power, while tightening liquidity is adding pressure as asset prices weaken.
According to Faber, declines in property, crypto, and other assets are reducing liquidity, which is weighing on markets in the short term.
Final Summary
- The crypto market hit extreme fear levels with a reading of 8 and flashed a ‘Very Bearish’ signal on the sentiment gauge.
- The Asian stock market crashed, wiping out $1.50 trillion in a single session and extending the crash to crypto, with $628 million wiped out in 24 hours.
