805 Tragedy!
Recently, U.S. economic data has been weak, raising concerns about an economic recession. In particular, the unemployment rate has risen to a nearly three-year high, which has further depressed market sentiment.
Against the background that an economic recession may be coming, investors generally expect that the U.S. Federal Reserve (Fed) may forcefully cut interest rates by 2 percentage points (or 0.5 percentage points) in September, or even cut interest rates by a total of 5 percentage points before the end of the year, in the hope of avoiding a "hard economic crisis". Landing", some economists even believe that the US Federal Reserve should "emergency cut interest rates" this month to quickly respond to economic difficulties.
Last Friday, the four major U.S. stock indexes all plummeted, with the Philadelphia Semiconductor Index falling 5.1%, the largest decline; the Nasdaq Index also fell 2.4%, and the panic index VIX soared 25.8% on the 2nd, reaching the highest level since March last year. The high point further reflects the market’s uncertainty about the future.
This uncertainty about the global economic outlook has also spread to the Asian market. Taiwan stocks fell sharply last Friday, losing thousands of points. In early trading today (5th), they once fell by nearly 1,500 points, setting a record for the largest intraday drop.
The Japanese and Korean stock markets were not calm either. The Japanese stock market dropped more than 2,000 points at the opening, and the Topix even fell to the point of triggering the circuit breaker mechanism. The Korean stock market fell by more than 4%. This situation made investors feel uneasy.
Peter Schiff warns: Global economy in crisis
Peter Schiff, a well-known gold bullion and economist, pointed out in a tweet this morning on The formation of the global debt bubble.
Peter Schiff believes that as inflation continues to rise, central banks are forced to raise interest rates, which has caused a large number of bubbles created in the past periods of low interest rates to begin to burst. He warned: "Now is the time to pay the bagpiper, the game it's over."
Bitcoin Crisis: Black Monday Coming?
It’s not just the stock market that has suffered in the past two weeks, the cryptocurrency market has also been implicated. Bitcoin ($BTC) plunged 12% this morning, plummeting to around US$52,000. Ethereum ($ETH), the second largest cryptocurrency by market value, The decline was even more severe, with a single-day drop of 22%, reaching as low as $2,000. Other altcoins also fell at varying rates. As of writing, the overall market has yet to show any obvious signs of rebound.
Image source: Tradingview
As a "big black fan" who has been bearish on Bitcoin for many years, Peter Schiff also issued a special warning against Bitcoin.
He pointed out that the price of Bitcoin fell below US$58,000, and if the US stock market opens tonight below the July low (US stock opening time is from 21:30 pm to 4:00 am Taiwan time), the Bitcoin spot ETF may It gapped down more than 15% and is 30% below its January high.
Such a large-scale loss could trigger a massive liquidation in the ETF market, and Peter Schiff reminded investors to prepare for a possible "crypto market Black Monday" if this happens.
