**Market Mayhem: Global Stocks and Crypto Tumble**
Global markets took a nosedive over the weekend, with the DOW and S&P 500 plummeting over 1,000 points and Bitcoin dropping below $49,000. Japan's Nikkei 225 experienced its worst single-day drop since 1987, while Taiwan's benchmark index saw its steepest decline in 57 years.
Most markets closed in the red on August 5, leaving traders to ponder if it's time to buy assets at a discount. Cointelegraph spoke with Huf, founder of Pear Protocol, who highlighted that market participants are overly optimistic about a Q4 rally. He warned that aggressive rate cuts could pressure the dollar and lead to further market volatility.
Huf suggested traders should prepare for summer liquidity dips by reducing leverage and increasing cash allocations. He also recommended pair trading to hedge against market downturns.
As the US Federal Reserve contemplates rate cuts, experts like Jeremy Siegel and Parker Lewis predict more market turbulence ahead. Prepare for continued volatility as the year progresses.