US stock market plunges, dragging Bitcoin down with it, liquidity mining tokens facing an early demise
On the evening of the 3rd, the U.S. stock market opened with a sharp decline, with the Dow Jones Industrial Average (DJI) plummeting over 800 points, about 3%, the Nasdaq Composite Index (IXIC) dropping nearly 600 points, about 5%, and the S&P 500 Index (SPX), which is frequently used for correlation statistics with Bitcoin, falling 125 points, nearly 4%. Tech stocks suffered heavy losses, with stocks like Tesla and Apple experiencing significant pullbacks. Foreign media opinion believes that this is a feedback to the continuous record highs of the U.S. stock market not matching actual economic growth.
Meanwhile, Bitcoin saw a decrease of over 10% in the past 24 hours, causing the overall cryptocurrency market cap to shrink from $377 billion to $337 billion. According to data from Skew, the positive correlation between Bitcoin and the S&P 500 Index has returned to its high point from July.
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Cryptocurrency Market Impact Intensifies
According to CoinGecko's monitoring data, the 24-hour price changes of the top 12 cryptocurrencies by market capitalization have mostly declined, with only TRON showing a counter-trend increase.
Liquidity Mining Tokens Hit Hard, Early Participants Unscathed
The more popular and high-risk liquidity mining tokens have seen significant drops in the past 24 hours, with Sushi dropping over 40%, YAMv2 YAMV2 dropping over 40%, Cream by Yearn dropping over 30%, and YFValue YFV dropping over 50%.
Taiwan's Hakka Finance (HAKKA), which just launched its liquidity mining program last night, also saw a drop of over 30%.
However, early participants in these tokens entered at very low costs, and their previous gains have already multiplied several times, so this significant drop does not result in substantial losses for them. However, investors who were attracted by high interest rates and entered the market later may be affected.
Furthermore, DeFi tokens have also experienced significant drops of 30-50%:
