Crypto Markets Dump 6%, Magnificent 7 Shed $550B, as ‘Slumptember’ Begins
Stock markets and crypto assets are in meltdown mode again, as billions have been wiped out over the past day. The “Magnificent 7” high-flying tech stocks have erased $550 billion in market capitalization on Sept. 3.
The group includes Google parent Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, which have outpaced the rest of the S&P 500 in growth for the past two years.
Additionally, AI giant Nvidia (NVDA) is on track for its largest daily drop since April 2024 following an antitrust subpoena from the United States Department of Justice (DOJ).
“September is historically the most volatile month of the year for stocks,” the Kobeissi Letter noted before adding, “We’re starting September off on a volatile note.”
BREAKING: Magnificent 7 stocks have now erased $550 BILLION of market cap today.
Nvidia, $NVDA, is on track for its largest daily drop since April 2024.
Volatility is here to stay. pic.twitter.com/GNaNbOc2km
— The Kobeissi Letter (@KobeissiLetter) September 3, 2024
Crypto Black Monday Redux
Crypto markets are currently in freefall with a slump that could equal the Black Monday event of August 5 if it continues. Total capitalization has crashed a little over 6% as around $100 billion exited the space over the past 24 hours. Nearly double that was lost during the Aug. 5 crash, however. The metric is currently $2.07 trillion, its lowest level since Aug. 7.
Bitcoin dumped more than 5% in a fall to $55,746 during the Wednesday morning Asian trading session, its lowest level since the early August crash. The asset had recovered slightly to trade at around $56,700 at the time of writing.
Ethereum was smashed 7% in a fall to just over $2,300 before a minor recovery as it bounced off the bottom. As usual, the altcoins are bleeding out, with losses between 5% and 7% for most of the high-cap assets.
Coinglass reports that, in the past 24 hours, 74,062 traders were liquidated, and the total liquidations came in at $196.4 million, the majority of which were long positions.
Slumptember Blues
September is traditionally a bearish month for crypto, with Bitcoin seeing losses for six previous ones with minor gains in just three of them.
Analyst “CrediBULL Crypto” commented that downside targets around the $56,000 level have been hit, which means “we are now ready for that relief rally sooner rather than later.”
Didn’t get that move up first unfortunately but we have now hit my downside target so hopefully this just means we are now ready for that relief rally sooner rather than later.
Nice wipe on OI here but no immediate signs of buyers stepping in just yet.
Let’s see how things… https://t.co/L3nS2jWdS6 pic.twitter.com/pkXeX53qCy
— CrediBULL Crypto (@CredibleCrypto) September 4, 2024
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