$1.5 trillion wiped from value of US stock market today

$1.5 trillion wiped from value of US stock market today

In a significant market downturn, the U.S. stock market experienced a substantial loss of $1.5 trillion in value today, April 17, 2025, according to Crypto Rover. This sharp decline was largely attributed to comments made by Federal Reserve Chairman Jerome Powell [2].

The U.S. stock market's plunge had a ripple effect across various financial markets, including the cryptocurrency sector. Bitcoin (BTC) dropped by 4.5% from $68,000 to $64,900, and Ethereum (ETH) fell by 3.8% from $3,200 to $3,070. This heightened trading activity indicated a significant market reaction to the U.S. stock market's loss [2].

The trading volume for BTC surged to 2.3 million BTC, a 50% increase from the previous day's volume of 1.5 million BTC, reflecting the market's volatility. Additionally, the correlation between the stock market and cryptocurrencies was evident, as the fear gauge, the CBOE Volatility Index (VIX), spiked to 25 from 18, indicating heightened market uncertainty [2].

From a technical analysis perspective, the sudden drop in cryptocurrency prices triggered several key indicators. The Relative Strength Index (RSI) for BTC fell to 30, indicating that the asset was entering oversold territory, suggesting a potential rebound in the near future. The Moving Average Convergence Divergence (MACD) for ETH showed a bearish crossover, signaling continued downward momentum in the short term [2].

The U.S. stock market's loss also had a broader impact on the global financial landscape. The Dow Jones Industrial Average dropped nearly 700 points, or 1.7%, and the S&P 500 slid 2.24%, weighed down by losses in the tech sector. The Nasdaq Composite sank 3.07%, edging closer to bear market territory [3].

The sharp decline in stock market value led to a flight to safety among investors, with many turning to cryptocurrencies as an alternative asset class. At 11:30 AM EST, the trading volume for stablecoins such as USDT and USDC increased by 70%, reaching a total of $5 billion in transactions [2].

Given the significant impact of the U.S. stock market's loss on the crypto market, it is crucial for traders to stay informed and adapt their strategies accordingly. The correlation between traditional financial markets and cryptocurrencies highlights the interconnectedness of global financial systems, and traders must be prepared for rapid market shifts [2].

References:
[1] https://www.ndtvprofit.com/markets/stock-market-live-updates-nifty-50-sensex-nifty-bank-gift-nifty-trading-levels-on-21-04-2025
[2] https://blockchain.news/flashnews/u-s-stock-market-plummets-by-1-5-trillion-amid-powell-s-comments
[3] https://www.cnbctv18.com/market/us-stock-market-live-updates-us-market-dow-jones-snp-500-nasdaq-nvidia-boeing-china-dollar-gold-yield-liveblog-19589439.htm/