Global Equities Shed $1.7T as Crypto Eyes Bottom
Key Summary
Global markets wiped $1.7T in equity valuation Friday morning after tech earnings sparked an intense risk-off wave, dragging Bitcoin below $80K amid rising U.S. election uncertainty.
Key Bullets
- Global equity markets across the U.S., Japan, South Korea, China, and Taiwan wiped $1.7T off total market capitalization over a 24-hour window.
- Data published by the Kobeissi Letter indicates the probability of a Democratic sweep in U.S. mid-term elections climbed by 7% to 72% over two days.
- Alphabet shares plunged more than 12% in value during the broader technology sector sell-off triggered by renewed corporate earnings scrutiny.
- Bitcoin trades more than 30% below its prior peak near $126K as derivatives desks reprice risk in the face of persistent inflation metrics.
Global Markets Wipe $1.7T in Friday Selloff
Global equities across the U.S., Japan, South Korea, China, and Taiwan wiped $1.7T from combined market capitalizations Friday morning following a bruising round of technology sector earnings reports. Alphabet shares plummeted over 12% in immediate trading sessions as institutional desks reassessed valuations tied to artificial intelligence software spending. Equity indices reeled under immediate selling pressure. Liquidity vanished from order books.
Data published by the Kobeissi Letter confirmed the probability of a Democratic sweep in upcoming U.S. mid-term elections climbed by 7% to 72% over a two-day span. Macroeconomic indicators piled onto the pressure with crude oil holding above $100 per barrel alongside climbing CPI, PPI, and PCE readings. Risk assets absorbed the blows. Traders dumped speculative inventory instantly.
Bitcoin Tests $80K Floor Amid Macro Volatility
Bitcoin hovered more than 30% below its prior peak near $126K Friday morning while derivatives exchanges processed persistent liquidations of leveraged long positions. On-chain volume spiked across major spot venues following recent security incidents involving the Binance exchange and broader technology equity declines. Market depth thinned rapidly. Bearish momentum accelerated through the morning.
Historical comparisons to the 2022 market cycle gained traction among institutional trading desks evaluating potential capitulation phases ahead of year-end. Back then, macroeconomic headwinds drove Bitcoin down to $16K before a multi-stage recovery took hold through subsequent quarters. Current order book dynamics mirror those prior troughs. Capitulation appeared imminent.
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