Crypto Liquidations Hit Market Hard During Unprecedented Global Selloff

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In a highly unusual twist, global markets are witnessing a simultaneous selloff across all major asset classes – from stocks and oil to gold. Experts are calling this a “rush to the exit,” as investors race to convert their holdings into cash. What this great liquidation means for the cryptocurrency market, which has already declined by 5.4% in the last 24 hours. Curious to know? Read on!

What’s Happening Across Asset Classes?

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aggressive tariff policy has adversely affected almost all the major markets across the globe. It has triggered severe turmoil in the market. Unlike the past, even so-called safer assets have been affected due to market uncertainty.

Yesterday alone, the S&P 500 index, a major index in the United States, dropped by over 4.031%, and the Nasdaq 100 index, another prominent index in the country, declined by no fewer than 5.23%.

Importantly, at the start of this month, the price of WTI Crude Oil was around $71.34. Since then, it has slipped by over 18.76%.

Notably, during the same period, the gold market has decreased by 2.48%, indicating that even this market has not been spared from the rising selling pressure in the global market.

Why Is This Not Normal?

Usually, during market uncertainty, investors move from risky assets like stocks to safer assets like gold. Normally, when one asset goes down, others go up. What is disturbing is that everything is falling together right now.

Adam Kobeissi states that investors are liquidating all assets to hold cash. Unfortunately, this happens in times of panic or deep uncertainty.

The rush to the exit:

Asset selloffs are defying historical correlations, coming with drops in stocks, gold, bonds, and oil prices, all at the same time.

It's not often you see a market where ALL assets are liquidated simultaneously.

Everyone wants cash, yet so many are… pic.twitter.com/mcysYxKlJ8

— Adam Kobeissi (@TKL_Adam) April 8, 2025

The CNN Fear and Greed index now stands at 4. This implies that investors are feeling extreme fear, right now.

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What This Great Liquidation Means for the Crypto Market

The cryptocurrency market has experienced a fall of 5.4% in the last 24 hours. During the same time, almost all the top cryptos have declined; Bitcoin has slipped by 2.6%, Ethereum by 6.5%, XRP by 2.0%, BNB by 0.9%, Solana by 1.5% and Dogecoin by 1.9%.

However, as of now, the total cryptocurrency market cap stands at least 1.25% above where it was at the time of opening. Likewise, the market cap of cryptos, excluding BTC, has grown from $875.85B to $884.44B, and the market cap of cryptos, excluding the top ten cryptos, has climbed from $188.51B to $192.9B.

In conclusion, the great liquidation wave has not spared cryptocurrencies, with top tokens facing sharp declines. However, a rise in the total crypto market cap – especially among altcoins – suggests underlying buying interest. While fear grips global markets, savvy investors may see this correction as a rare entry point. As traditional safe havens like gold also fall, crypto remains volatile but resilient. The coming days will test whether it acts as a risk asset – or a refuge.