đžâA result, not a causeâ
Badr Balaj, an expert in digital currency markets, estimated, based on his follow-up of the âMonday collapse,â that âthe total digital currency market fell below $2 trillion to reach $1.85 trillion,â considering that âdigital currency traders (encrypted) faced significant losses, as major digital currencies, including Bitcoin and Ether, witnessed a sharp decline; leading to the liquidation of more than a billion dollars.â
The financial analyst wove many explanations for what happened; however, he stressed that âthe decline is not a cause in itself, but rather is a consequence of similar collapses and a result of the collapse of traditional financial markets, after fears of a recession,â continuing to explain: âThe portfolio of investors in digital assets usually includes their investments in traditional markets, and they rush in times of crises to resort to getting rid of high-risk financial assets (Bitcoin is one of them), especially after actual indicators of the approaching US economic recession cycle; which increases the risks of collapse.â
In his statement to Hespress, Balaj considered that âtraditional financial markets were not only affected by the context of geopolitical tensions, as evidenced by the fact that the Iranian strike months ago did not have the impact we saw todayâ; rather, the reason is the employment data in the United States of America, which indicated an increase in the American unemployment rate.
