August 5, 2024, Black Monday
The volatility indicator in the American market, the VIX, has reached levels not seen since covid 19.
We are experiencing a "Blackswan" like what we experienced with the bankruptcy of FTX and covid 19.
The cryptocurrency market has seen liquidations exceeding $1 billion, a record for 3 years.
So what is happening and how to react?
Since last Friday, the fear of a recession in the United States has increased after the disappointing American employment figures.
In addition, the situation in Japan has only accelerated this fear.
Since 2011, key rates in Japan have been 0%.
Investors have taken advantage of this for more than a decade to borrow and convert Yen into dollars to buy assets.
The problem is that at the beginning of July, Japanese interest rates rose to 0.25%.
Investors who took advantage of the Yen are forced to sell their assets to recover the dollar, which is weakening against the Yen, to repay their loans.
Risky assets are the first to be sold (cryptocurrency).
This is why US stocks have been correcting since the beginning of July.
But these are not the only assets that were affected.
The NIKKEI (Japanese stock market) suffered the biggest drop in its history in 2 days since 1987.
The Taiwan stock market collapsed, the worst day in 57 years. The Korean stock market too.
The US can no longer wait, they are not going to let the market collapse like during Covid 19.
The printing press will start again in September with the increase in US interest rates.
The plan remains the same.
Q4 2024 will be the bullish recovery of the crypto market.
Observe the cryptos that bounce the most when Bitcoin bounces (TAO, ONDO, KAS etc..).
The longer they make wicks without breaking important demand levels, the more they will explode when Bitcoin reaches its new ATH.
Cryptos are not dead.
