**The Major Driver Behind the Market Drop ๐จ**
**The Major Driver Behind the Market Drop ๐จ**
โ Unemployment Rate โ
โ WWIII Fears and Genesis Selling โ
โ Bank of Japan Raising Interest Rates โ
Recently, the Bank of Japan raised its interest rate for the first time in 17 years. The last hike was back in 2007, right before the US recession ๐.
**Why Is This Bearish?**
With Japanโs long-standing zero interest rate, Japanese investors had been borrowing yen to invest in global markets like US equities and crypto. Now, with the interest rate hike, borrowed money is no longer free. Investors are dumping assets to repatriate funds back into yen.
**What's Next?**
For the market bloodbath to end, either the BOJ or the Fed needs to cut rates soon. Without this intervention, the sell-off is likely to continue.
