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U.S. markets took a sharp hit this week, with heavy selling pressure dragging down major indexes and reigniting fears of a broader risk-off cycle. As equities slid, crypto markets followed almost instantly — reinforcing a trend we’ve seen repeatedly over the past two years: when stocks fall hard, crypto often falls harder.

The selloff has been fueled by a mix of tech-sector weakness, macro uncertainty, and investor repositioning. High-growth stocks were among the biggest casualties, and that risk aversion quickly spilled into digital assets.

Within hours, Bitcoin dropped sharply, triggering widespread liquidations across derivatives markets. Altcoins saw even steeper declines, amplifying total crypto market losses. The move wasn’t isolated — it mirrored the broader de-risking happening across Wall Street.

At the same time, trading activity slowed significantly on major platforms, and Coinbase recently reported weaker performance tied to softer volumes — a sign that volatility cuts both ways. When confidence drops, participation often does too.

🔄 Why Stocks and Crypto Are Moving Together

Crypto was once marketed as “uncorrelated.” Today, data tells a different story.

1️⃣ Risk-On = Risk Assets

In uncertain environments, investors reduce exposure to high-volatility assets. Both tech stocks and crypto fall into that bucket. When institutional capital rotates out of growth assets, crypto feels it immediately.

2️⃣ Liquidity Is King

Expectations around policy decisions from the Federal Reserve continue to drive markets. Tighter liquidity or prolonged high interest rates typically pressure speculative assets. Crypto thrives when liquidity expands — and struggles when it contracts.

3️⃣ Leverage Magnifies Pain

Crypto markets carry high leverage. When prices dip, automatic liquidations accelerate the decline. This cascade effect often exaggerates moves compared to equities.

4️⃣ ETF & Institutional Flows

With institutional exposure to spot crypto products increasing over the past year, flows now matter more than ever. When funds de-risk portfolios, crypto becomes part of that trimming process.

🧠 My Take — Based on Facts, Not Hype

Here’s what the data suggests:

✅ Crypto is behaving like a high-beta tech asset, not a safe haven.
✅ Macro conditions — inflation, rates, liquidity — are driving sentiment.
✅ Sharp drawdowns are often amplified by leverage, not necessarily by deteriorating blockchain fundamentals.

This isn’t a collapse of crypto adoption. Network activity across major chains remains intact. Development continues. Institutional infrastructure still exists.

But markets don’t trade on long-term vision in the short term — they trade on liquidity and fear.

🔮 What To Expect Next

📊 Short-Term: Volatility likely continues. Markets rarely stabilize immediately after a sharp cross-asset selloff.

📉 Key Levels: Technical support zones will be tested. If they hold, we may see consolidation. If they break, further downside is possible before a base forms.

💵 Macro Dominance: Upcoming economic data and policy commentary will heavily influence direction. Expect crypto to react quickly to stock movements.

🧊 Sentiment Reset: Extreme fear historically precedes rebounds — but timing the exact bottom is nearly impossible.

✅ What To Do & ❌ What To Avoid

✅ DO:

✔️ Focus on risk management
✔️ Keep position sizes reasonable
✔️ Maintain long-term perspective if you’re investing, not trading
✔️ Watch macro indicators closely

❌ DON’T:

❌ Over-leverage in volatile conditions
❌ Panic sell purely on emotion
❌ Assume crypto is immune to stock market shocks
❌ Go “all in” trying to catch the bottom

🎯 Bottom Line

This selloff is a macro-driven reset, not an existential crisis. Crypto remains tied to global liquidity cycles. Until broader market stability returns, expect heightened swings.

Discipline beats prediction in times like these. Stay strategic, stay patient — and remember: volatility cuts both ways. 🚀📉
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The Singapore Exchange (SGX) has revealed plans to introduce Bitcoin perpetual futures before the end of 2025, targeting institutional and professional investors. 
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This marks SGX’s strategic move to expand its product suite amid growing global interest in crypto assets. It aligns with broader trends of traditional financial institutions integrating crypto products.
Notably, unlike traditional futures contracts, perpetual futures do not have an expiration date. This allows investors to trade continuously based on the direction of Bitcoinprices.
Bolstering Institutional Confidence in Bitcoin
Industry leaders believe SGX’s entry into crypto derivatives is a significant step in framing Bitcoin as a legitimate asset.
Darius Sit, founder of the crypto-asset trading firm QCP, noted that SGX’s Bitcoin product would serve as a strong signal to institutional investors. Specifically, he claimed it helps position Bitcoin not as a speculative asset but as one worthy of consideration as an investment-grade instrument.
Ong Chengyi, APAC head of policy at Chainalysis, echoed this sentiment. Chengyi described the move as a step toward firmly establishing Bitcoin as a legitimate investment asset suitable for inclusion in professional portfolios.
Shi Le, managing director at crypto trading firm Auros, pointed out that perpetual futures are popular in the crypto trading arena. However, SGX’s product introduces a regulated alternative. Given its familiar and accessible structure, this could appeal more to participants from traditional finance.
Moreover, the product could be a hedging tool for institutions, similar to how ETFsbrought crypto into mainstream investing.

Furthermore, Chengyi highlighted that SGX’s Bitcoin perpetual futures offer a transparent avenue for institutional investors to enter the crypto market while mitigating counterparty risks.  
According to Robert Krugman, Broadridge’s executive, the launch could also prompt exchanges worldwide to consider offering comparable products.  
Notably, SGX will prioritize risk management and market integrity as it introduces this new product. Etelka Bogardi of Norton Rose Fulbright emphasized that the exchange must follow stringent procedures under Singapore’s Securities and Futures Act. These procedures include tools like leverage limits, margin requirements, standardized contracts, and clearing controls.
Looking Ahead
With major global financial institutions like Standard Chartered and Fidelity already active in crypto custody, SGX’s entry into perpetual futures may only be the beginning. The launch could catalyze further institutional interest and set the stage for broader crypto product innovation in regulated markets.
As QCP’s Darius Sit put it: “Hopefully, this is the first Bitcoin product of many to come.”
DisClamier:
This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect LACHAKARI Crypto opinion. Readers are encouraged to do thorough research before making any investment decisions. LACHAKARI Crypto is not responsible for any financial losses.
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