$VIDT short now

On August 5, 2024, the US Federal Reserve (Fed) held an emergency meeting to deal with the severe collapse of the Japanese market, causing a wave of sell-offs around the world. The Japanese yen fell 13%, while the Korean and Taiwanese markets each fell nearly 10%. Bitcoin prices were also affected, falling 18% in the past 5 days, and S&P futures fell 4%.
In this context, the Fed is expected to cut interest rates by 50 basis points to stabilize the financial situation. Economist Peter Schiff is concerned that cutting interest rates could lead to an economic recession, adding to the current market uncertainty.
Goldman Sachs has increased its forecast for the possibility of a US recession next year from 15% to 25%. Despite the increased risks, they believe the economy remains stable and the Fed has plenty of room to cut interest rates if necessary. Goldman Sachs predicts that the Fed could cut rates by 25 basis points in September, November and December, and if job growth fails to improve, a 50 basis point cut may be necessary. Lower rates could boost risk assets like cryptocurrencies, making traditional savings less attractive and prompting investors to seek higher returns from assets like Bitcoin. Bitcoin is often seen as a hedge against inflation and economic uncertainty. However, rate cuts could also signal deeper economic problems.

Elon Musk has broken his silence and issued a dire warning about the US dollar and the US national debt. He believes that Bitcoin has “some value” and has expressed a particular fondness for Doge Coin. Musk warned that the US dollar is headed for “destruction” due to the ever-increasing $35 trillion debt, which could lead to the US bankruptcy.
Tesla CEO Elon Musk added $1.5 billion worth of Bitcoin to Tesla’s balance sheet in 2021, causing Bitcoin prices to surge and boosting the cryptocurrency market. However, Tesla later backed off on its plans to accept Bitcoin payments and sold most of its Bitcoin in 2022, leading to a sharp drop in Bitcoin prices. Currently, Tesla still holds nearly 10,000 Bitcoins on its balance sheet, worth nearly $650 million.
Musk also hinted that his Twitter platform (now rebranded as X) would be rolling out a series of upgrades, which some Bitcoin and cryptocurrency traders believe could be market-changing.

Source: Forbes, Cryptoglobe

Bitcoin (BTC) experienced a sharp price drop on August 5, 2024, leading to a significant decline in many altcoins. The main reason is due to widespread risk aversion in global markets, especially when investors are concerned about the possibility of a US economic recession along with escalating geopolitical tensions in the Middle East. . This led to a decline in confidence and a wave of selling in the cryptocurrency market.
Data from CoinGecko shows that BTC fell more than 12% within 24 hours, while Ether plummeted 17%. Other factors contributing to the decline include the Bank of Japan unexpectedly raising interest rates to a 16-year high and uncertainty about the US Federal Reserve's interest rate cuts. (Fed) in September​ (Cryptonews)​​ (Cryptonews)​.
At the same time, Bitcoin ETFs also witnessed the largest capital withdrawal in the past three months on August 2, 2024, raising concerns about the possibility that the market could enter a new decline​ (Cryptonews )​.#MarketDownturn

The #crypto market is experiencing a lot of volatility, with #bitcoin recently falling below $57,000, causing a wave of contract liquidations worth hundreds of millions of dollars. Over the past 24 hours, a total of over 379 million USD was liquidated, the majority of which were long-term positions, with Binance accounting for the majority of them​ (The Daily Hodl)​ (Binance)​.
Several other cryptocurrencies also experienced major volatility, including Ethereum, Solana, Dogecoin, and Toncoin. The total number of liquidated positions on exchanges such as Binance, OKX, Huobi and Bybit is also very significant​ (coinglass)​.
Next week, it is forecast that the market will continue to fluctuate due to the influence of macro factors and developments in regulations. Investors should be careful and closely monitor market news to make reasonable investment decisions.