Reasons for Panic Selling in Investment Markets:

1. Tensions in the Middle East (Israel - Iran) The escalation of the conflict between Israel and Iran is leading to increased geopolitical risks, causing uncertainty in global markets. Investors fear that the worsening situation could disrupt oil and other resource supplies, as well as lead to large-scale military actions, thereby increasing market volatility.

2. Collapse of the Japanese Market and Yen Crash (Carry Trade) The Japanese stock market is experiencing its worst decline since 1987, linked to the crash of the yen and the end of carry trades. Carry trade, where investors borrow yen at low interest rates to invest in higher-yielding assets, becomes unprofitable due to the yen's fall. This leads to massive investor exits and panic selling in the Japanese market.
3. Collapse of Other Markets (American, Asian, etc.) American and Asian markets are also under pressure. The Taiwanese market is experiencing its worst decline in 57 years. The fall in these markets is caused by several factors, including slowing economic growth, rising interest rates, and geopolitical instability. Investors are fleeing risky assets for safe havens, exacerbating the decline.
4. U.S. Elections and Changes in Key Rates Political uncertainty related to the U.S. elections also contributes to market volatility. Possible changes in economic policy and tax regulation are causing investor concerns. Additionally, it is expected that the Federal Reserve may lower key rates in response to economic instability, further destabilizing the markets.
5. Liquidation of Assets by Major Crypto Players (Jump, Genesis, etc.) Major crypto players and market makers, such as Jump and Genesis, are liquidating their assets in ETH, SOL, and other cryptocurrencies. This triggers a chain reaction in the market, leading to mass sell-offs and falling cryptocurrency prices. Asset liquidation may be linked to the need to cover losses or withdraw funds amid market uncertainty.
6. Market Pressure from MtGox and Grayscale Market pressure is exerted by the sale of assets from MtGox and Grayscale. MtGox, the former largest bitcoin exchange, is resuming payments to affected clients, leading to the sale of a large volume of bitcoins. Grayscale, managing the largest crypto funds, may also sell assets, creating additional market pressure and contributing to price declines.
7. Weakening U.S. Labor Market Weakening of the U.S. labor market also negatively impacts investment sentiment. Rising unemployment and slowing job creation raise concerns about slowing economic growth. This, in turn, reduces investor confidence in market stability and prompts panic selling.

These factors together create an unstable situation in investment markets, leading to panic selling and significant losses for investors.

Recent Crypto Market Event: Yesterday, 308,000 long positions were liquidated on the cryptocurrency market for a total of $1.24 billion, the largest since April.