Shocking news, analysis of the source of this big crash: the yen interest rate hike drains global liquidity, and the US economy hints at collapse. #加密市场急跌
1. The hard landing economic recession caused by the Fed's rate cut
2. The yen interest rate hike drains liquidity
For decades, Japan has lent money to the world at negative and zero interest rates, and these funds flow into the global stock market/bond market/cryptocurrency, forming a pool of funds that does not require cost
On July 31, the Bank of Japan decided to raise interest rates, making this free pool of funds no longer exist. Now global investors must sell assets to repay yen debts and seek new cheap liquidity.
At the same time, the Fed's rate cut further exacerbated market panic and further drained market liquidity.
But this volatility does provide medium and long-term investors with an excellent opportunity to increase their positions.