Crypto Markets Plunge 6%, Magnificent 7 Loses $550M, As ‘Slumptember’ Begins

Stock markets and crypto assets are back in meltdown mode as billions have been wiped out over the past day. The “Magnificent 7” high-flying tech stocks have wiped out $550 billion in market capitalization as of September 3.

The group includes Alphabet’s Google, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla, which have outperformed the rest of the S&P 500 in growth over the past two years.

Also, artificial intelligence giant Nvidia ( NVDA ) is on track for its biggest daily drop since April 2024 following an antitrust subpoena from the US Department of Justice (DOJ).

“September is historically the most volatile month of the year for stocks,” Kobeissi’s Letter noted before adding, “We’re starting September on a volatile note.”

LATEST: The 7 Magnificent Stocks Have Now Wiped $550 Billion in Market Cap Today

nvidia, $NVDAis on track for its biggest daily drop since April 2024.

Volatility is here to stay. pic.twitter.com/GNaNbOc2km

— Kobeissi Letter (@KobeissiLetter) September 3, 2024

Crypto Black Monday Redux

Crypto markets are currently in freefall with a decline that could match the August 5th Black Monday event if it continues. Total market capitalization is down a little more than 6%, as about $100 billion exited the space over the past 24 hours. Almost twice as much as was lost during the August 5 crash, though. The metric is currently at $2.07 trillion, its lowest level since August 7.

Bitcoin fell more than 5% in a slide to $55,746 during the Asian trading session on Wednesday morning, its lowest level since the crash in early August. The asset had recovered slightly to trade around $56,700 at the time of writing.

Ethereum broke 7% down to just over $2,300 before a small recovery as it bounced back to the bottom. As usual, altcoins are bleeding, with losses between 5% and 7% for most high-cap assets.

Coinglass reports that, in the last 24 hours, 74,062 traders were liquidated and total liquidations amounted to $196.4 million, most of which were long positions.

Slumptember Blues

September is traditionally a bearish month for crypto, with Bitcoin seeing losses for the previous six with minor gains in just three of them.

Analyst “CrediBULL Crypto” commented that the downside targets around the $56,000 level have been met, which means “we are now ready for this relief rally sooner rather than later.”

Unfortunately, I didn’t get that move up, but we’ve now hit my target on the downside, so hopefully that just means we’re now ready for that relief rally sooner rather than later.

Nice cleanup of the OI here, but no immediate signs of buyers yet.

Let’s see how things… https://t.co/L3nS2jWdS6 pic.twitter.com/pkXeX53qCy

— CrediBULL Crypto (@CredibleCrypto) September 4, 2024

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