Bitcoin Rebounds 15% After $1.1B Liquidations, Ethereum Hits 16-Month Low

Bitcoin (BTC) experienced a notable rebound after plummeting to a four-month low, briefly touching $76,000 before recovering. This rebound followed a series of substantial liquidations totaling $1.1 billion, which occurred after several major market wipeouts. The Fear & Greed Index dropped to 14, its lowest level since 2022, signaling heightened market anxiety. Ethereum (ETH) also hit a 16-month low, underperforming in the market. A significant ETH liquidation at $1,127 was a focal point of concern. Meanwhile, the stablecoin market cap reached a new all-time high, reflecting investor caution and a shift towards safer assets. Cathie Wood, a prominent investor, suggested that investors are discounting the potential for stimulus measures, which could influence market sentiment.

The broader stock market continued its decline, with the S&P 500 down 2% for the session, nearing its lowest levels since September. This decline extended the early March slump, exacerbated by renewed concerns over tariffs and job cuts. The market's volatility was further highlighted by Tesla's stock dropping over 15% in a single day, marking its worst decline since September 2020 and wiping out more than $700 billion in market value. The sell-off in the U.S. stock market worsened as investors questioned the economic pain President Donald Trump was willing to endure.

Amidst the market turmoil, the odds of a rate cut surged, reflecting growing concerns about economic stability. This shift in monetary policy expectations added to the complex landscape for investors, who are navigating both the crypto and traditional markets. The regulatory environment for cryptocurrencies also saw developments, with the Securities and Exchange Commission looking to ease registration rules for crypto firms. Additionally, a Senate committee was set to vote on a stablecoin bill, indicating ongoing efforts to regulate the crypto space. Mt. Gox, the infamous crypto exchange, made its second significant move of over $900 million in a week, adding to the market's volatility. Coinbase, a major crypto exchange, announced plans to launch 24/7 perpetual-style futures in the U.S. and secured a license in India, expanding its global footprint. Deutsche Borse also entered the crypto custody services market, offering BTC and ETH custody. The Singapore exchange rolled out open-ended BTC futures, further diversifying the crypto