The world’s foremost corporations have experienced a staggering loss of billions in market capitalization amid a significant downturn in the stock market, which is typically bearish during this month.

Both stock markets and cryptocurrency assets are once again in a state of turmoil, with billions being wiped out over the past 24 hours. The “Magnificent 7” high-performing tech stocks—Google parent company Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—have collectively lost an astonishing $550 billion in market capitalization as of September 3rd. These tech giants have consistently outpaced the rest of the S&P 500 in growth over the last two years.

In particular, AI powerhouse Nvidia (NVDA) is on course for its most significant daily decline since April 2024, following an antitrust subpoena from the United States Department of Justice (DOJ). This legal scrutiny has exacerbated market jitters and contributed to Nvidia’s steep drop.

According to the Kobeissi Letter, “September is historically the most volatile month of the year for stocks,” and indeed, this month has commenced on a notably turbulent note.

Cryptocurrency markets are currently experiencing a severe downturn that could rival the infamous Black Monday event of August 5 if the decline continues. Total market capitalization has plummeted by over 6%, resulting in an exodus of approximately $100 billion from the space within the past day. During the August 5 crash, nearly double that amount was lost. As of now, the total market capitalization stands at $2.07 trillion, marking its lowest point since August 7.

Bitcoin has suffered a significant drop of more than 5%, falling to $55,746 during Wednesday morning’s Asian trading session—its lowest level since the early August crash. The cryptocurrency had managed a slight recovery and was trading around $56,700 at the time of reporting.

Ethereum has been hit even harder, plunging 7% to just over $2,300 before seeing a minor recovery as it bounced off its lowest point. As usual, altcoins are also experiencing substantial losses, with most high-cap assets declining between 5% and 7%.

According to Coinglass, the past 24 hours have seen 74,062 traders liquidated, totaling $196.4 million in liquidations. The majority of these liquidations were long positions, reflecting the extreme volatility in the market.

Historically, September has been a bearish month for cryptocurrencies, with Bitcoin posting losses in six out of nine previous Septembers and only minor gains in three.

Analyst “CrediBULL Crypto” noted that downside targets around the $56,000 level for Bitcoin have been reached. This suggests that a relief rally may be on the horizon sooner rather than later, offering some hope amidst the ongoing market turbulence.