Bitcoin dropped by 13% during the last 24 hours.
Ethereum dipped by 20%
The total liquidation reached $1.07 billion in a day.
And it was caused by 3 things...
1️⃣ Japan
5 days ago, it raised the interest rate. It happened for the second time during the last 17 years.
The reason for it is to normalize monetary policy. But something went wrong.
Japan's stock market crashed. The Nikkei 225 witnessed the largest 2-day drop in history.
Some people compare Black Monday 1987 with.
Okay, but why did a did a small 0.25% interest rate cause it?
Before, Japan had 0-0.1%. That allowed people to borrow money with ease and no interest.
So they put them in high-risk things like stock and crypto.
But times have changed. 0.25% appeared, and people have to pay their debt.
Or they have to pay the interest.
That's why investors are selling everything right now.
Besides that, a higher interest rate put pressure on Yen. The YEN/$ ration grew by 11% in the last 5 days.
Altogether, it crashed the market and dragged down America and crypto
2️⃣ WWIII
I've already mentioned Iran-Israel case and UK protests yesterday.
Other countries, like US, will be involved into this too.
But what really signifies the probable beginning of WWIII is the raising purchases in military stocks, according to Patrick Bet-David
it's still not verified, but there are big chances it's really like this.
3️⃣ US Recession
Last week, the unemployment rate was released. It jumped to 4.3%, which is the 3-year high.
Next month, the rate cuts may come.
And this uncertain situation make people think that recession is coming soon.
That way, they are getting cash to somehow survive through.