The suspension stirred panic among investors following the market downturn.
Crypto-friendly trading firm Robinhood has temporarily suspended trading on its platform, which has sparked investor concerns. The company has not made any official announcement on the latest development.
Crypto Bleeding Massive Red
Robinhood’s decision to suspend trading comes amid a severe market turndown, with the stock and crypto markets experiencing significant declines. Earlier today, BTC fell to its lowest level since February, declining more than 10% to below $52,000, and ETH reached a six-month low of around $2,300.
Over the past 24 hours, the crypto market has liquidated over $1 billion in leveraged positions. Specifically, around $966.31 million in leveraged long positions were closed, according to CoinGlass.
Before the downturn, experts predicted that the price of BTC would skyrocket to $105,000 by August 2025. Similarly, Binance CEO believes the crypto asset’s price will jump. However, things are looking very gloomy for the leading crypto asset.
Stock Market Also Bleeding
The global stock market is also experiencing a massive decline. In the U.S., the downward trend continued, with Nasdaq futures decreasing by 4.7% and S&P 500 futures tumbling 12.4%. European markets were similarly impacted, with EUROSTOXX 50 futures declining 2.1% and FTSE futures falling 1.2%.
The Chinese yen and Swiss franc appreciated as investors moved towards safer assets. Japanese 10-year bond yields declined to 0.785%, their lowest level since April, while U.S. Treasury yields saw a sharp decrease, with 10-year yields falling to 3.723% and two-year yields dropping to 3.807%. This deepened the yield curve inversion, which could be a potential recession indicator.
Recession Probability Hits 25%
Following the recent crash in the global market, experts estimate a 78% likelihood of a rate cut in September, with more reductions expected later this year. Given the present circumstances, Goldman Sachs, a leading global investment banking, securities, and asset and wealth management firm, has increased its recession probability to 25%.
The U.S. dollar lost its safe-haven allure, dropping 0.4% against a mix of major currencies. It also declined in value against the yen and euro, while the Swiss franc appreciated. Gold price climbed to $2,456 per ounce as investors turned to precious metals for safety.
Overall, the selloff reflects ongoing market concerns and emphasizes the necessity of carefully monitoring how it may affect the global markets.
