Market Panic Builds Forward of Potential 'Black Monday,' Crypto Liquidations Spike to $900M – Decrypt

U.S. inventory futures tumbled Sunday night, amplifying fears of a disorderly market open and fueling hypothesis of a possible “Black Monday”-style selloff as sentiment collapsed throughout equities and crypto.

S&P 500 futures dropped 5.98% by 10 p.m. ET, whereas Nasdaq 100 futures slid 6.2%. Dow futures have been down 5.5%. The strikes adopted weeks of mounting commerce tensions and macro uncertainty, with buyers offloading threat throughout all asset lessons.

Jim Cramer, host of CNBC’s Mad Cash, referenced the historic parallel in a submit Saturday, writing: “Stunned we will not get a brief cowl rally in case President Trump realizes {that a} Black Monday could not burnish a legacy.”

Asian markets mirrored the deepening risk-off temper, with Japan’s Nikkei 225 falling as a lot as 8.9% in early buying and selling. In Taiwan, the Taiex index plunged almost 10% after a two-day vacation, triggering circuit breakers for main shares together with TSMC and Foxconn.

Authorities have additionally imposed a brief ban on short-selling to stabilize the market.

In crypto, liquidations have spiked to roughly $892 million, which incorporates greater than $300 million for Bitcoin lengthy and quick positions, CoinGlass information reveals.

“Not solely has Bitcoin damaged beneath $80,000, however gold has additionally dropped underneath $3,000,” Marco Lim, managing director at Solowin Holdings and founding associate of MaiCapital, informed Decrypt. “If USD/JPY breaks decrease, we’re prone to see additional unwinding of carry trades.”

In different phrases, buyers could begin pulling capital from higher-yielding property, accelerating risk-off flows throughout world markets.

In the meantime, volatility index futures ($VIX) have spiked above their August 2024 peak. 

The Kobeissi Letter, a extensively adopted macro publication, mentioned in a Sunday submit on X that market motion had “misplaced its orderly nature” and was now getting into a fear-driven part.

“Even the secure havens are getting dumped,” it wrote, as gold futures briefly fell beneath US$3,000/oz. The agency mentioned sentiment was nearing ranges final seen in March 2020.

Retail buyers bought $1.5 billion in equities throughout a 2.5-hour window Friday—the most important intraday outflow on report.

Institutional capital additionally continued to rotate out of U.S. equities at tempo, with March 2025 marking the sharpest exit in years.

The newest AAII sentiment survey confirmed 61.9% of buyers have been bearish, the third highest studying on report. Bullish sentiment stood at simply 21.8%.

Crypto adopted go well with. Bitcoin fell beneath $80,000 on Sunday night time, whereas Ethereum dropped underneath $1,800. The worldwide crypto market cap fell 10% to $2.57 trillion, in keeping with CoinGecko.

Kobeissi warned the selloff was doubtless close to “capitulation,” however mentioned any bounce could be tactical, not basic.

“Even the worst bear markets see reduction rallies,” it famous.

Markets now await Monday’s U.S. open and contemporary information on inflation due later within the week for the following directional catalyst.