The crypto markets experienced a staggering 10% decline within a mere 24 hours, resulting in a massive exodus of over $240 billion from the space. This downward trend is part of a larger narrative that echoes sentiments not felt since the initial COVID lockdown.
As the stock market futures also reflect dire straits—down 15% over the past three days—observers are beginning to draw parallels between current conditions and those witnessed during economic downturns. The Kobeissi Letter aptly remarked on April 7 that market sentiments resemble those of a depression era.
Furthermore, oil prices plummeted below $60, signaling a dramatic collapse in demand. Gold, often viewed as a safe haven, has seen its prices drop by $180 in just two sessions, indicating a significant flight to cash. In tandem, bond prices have surged, suggesting a general sentiment that the economy has come to a standstill.
“Sentiment is down to March 2020 levels like we are entering a lockdown. This is a mass flight to the sidelines.”
Lockdown Level Fear and Panic
In March 2020, crypto markets witnessed a staggering 50% downturn within a week, as governments worldwide imposed strict lockdown measures to combat the pandemic. Fast forward to 2025, the situation appears even graver, with nearly half a trillion dollars—more than double the entire crypto market cap in March 2020—exiting the market over the past month, and almost half of that in the last 24 hours alone.
The Kobeissi Letter noted that bearish sentiment is nearing historical highs, stating that “Black Monday” has become the prevailing expectation amid ongoing tariff uncertainties. A realization that short-term capitulation is probable has left many investors on edge.
Today, a drop in US stock market futures further exacerbated concerns, placing the S&P 500 futures down by 22%—a clear indication of bear market conditions. The US stock market has erased an average of $400 billion in value per trading day for 32 consecutive days, an alarming trend that has investors reeling.
On Friday, there had been some cautious optimism surrounding the possibility of a trade deal. However, the silence that followed left markets disappointed. When questioned about the unprecedented sell-off, former President Trump commented, “Sometimes you have to take medicine.”
Asian Stocks Tank
As trading resumed on Monday, Asian stock markets opened to double-digit declines, causing many to activate circuit breakers—mechanisms designed to halt trading to prevent panic-induced market crashes.
Here are all the markets that hit circuit breakers today so far:
China
Taiwan
Japan
Russell Futures
Australia
Singapore$VIX is up 14.62%.
Investor Raoul Pal described the current climate as exhibiting “the delicious smell of peak fear,” while urging caution that this too shall pass. In light of the violent sell-off, however, few investors share the optimism of potential bullish opportunities just yet.
“I hope you are ready to look for spare cash under the sofa to add very, very soon. In a bull market, such opportunities are a gift.”
As we navigate these turbulent times, it’s crucial to remain informed and assess the market with a clear, analytical perspective. Understanding these patterns may become imperative for making informed investment decisions moving forward.
