👉👉👉 Is #bitcoin☀️ Really Safe? New Insights from ‘#BlackSwan ’ Author on Recent Crash
Bitcoin Leads Global Crypto Market Downturn Amid Japanese Market Crisis
Bitcoin's Recent Plunge:
- Bitcoin dropped to $49,751 on August 5, leading a global crypto market downturn. This plunge is largely attributed to turmoil in the Japanese markets.
Trigger in Japan:
- The Japanese stock market fell over 10% due to a stronger yen, tighter monetary policy, and US recession concerns. This followed the Bank of Japan’s (BOJ) abrupt decision to raise interest rates after 33 years of near-zero rates and extensive quantitative easing. Nassim Nicholas Taleb noted the long-term costs of Japan's prolonged low interest rates and liquidity injections.
Taleb's Remarks:
- “Nearly 33 years of (near) Zero Interest Rates (ZIRP) and 23 years of Quantitative Easing come at a price you eventually must pay. (Japan was always mentioned by the QE fools as a place where the strategy worked).”
Is Bitcoin Safe?
- Bitcoin fell to a seven-month low during the global market plunge, raising questions about its safety as a haven. Despite the drop, Bitcoin has shown resilience in past crises, such as rising to $29,000 in March 2023 amid US bank collapses.
- Ethereum and Solana also experienced significant declines, as did traditional assets like Nvidia, Tesla, and Apple, suggesting Bitcoin's correlation with global economic changes rather than a lack of safety.
This is not investment advice.
Source - newsbtc.com
