U.S. stocks closed lower on Wednesday, with Meta's shares plunging 11% after forecasting a significant increase in future spending, marking its biggest drop in nearly three years. Microsoft also declined, dragging down tech stocks. The Nasdaq led the decline, falling 1.6%.
Furthermore, the market's lukewarm reaction to the US-China trade truce agreement indicates that the positive impact had already been priced in. Analysts point out that after the market's consecutive gains, investors have become more risk-averse, and the failure of tech giants' earnings reports to clarify the timeline for AI investment returns, coupled with Federal Reserve Chairman Jerome Powell's downplaying expectations for further interest rate cuts, has increased the likelihood of a short-term market correction.
- The Dow Jones Industrial Average fell 109.88 points, or 0.2%, to close at 47,522.12.
- The S&P 500 fell 68.25 points, or 1%, to close at 6,822.34.
- The Nasdaq Composite Index fell 377.33 points, or 1.6%, to close at 23,581.14.
- The Philadelphia Semiconductor Index fell 111.93 points, or 1.53%, to close at 7216.00 on October 30th.
Bitcoin briefly fell below $107,000.
Against this backdrop, Bitcoin briefly fell below $107,000 in the early morning, reaching a low of $106,308. However, BTC rebounded after the US stock market closed. At the time of writing, it was trading at $109,789; Ethereum's performance was similar to Bitcoin's, currently trading at $3,852.
Highly leveraged whale long positions liquidated
According to on-chain analyst Ember's monitoring, a whale long on$107 million worth of BTC last night with 40x leverage, but was forced to liquidate its position as the price plummeted. Ultimately, the long position, worth $143 million, resulted in a loss of $6.3 million.
However, early this morning, the whale used the remaining $470,000 after the liquidation to open a 40x BTC long position, with a liquidation price of $107,297. Whether it will correctly predict the direction this time remains to be seen.
