The bigger the waves, the more expensive the fish! The brave ones will be fed to death, while the timid ones will starve to death. Who is laughing when more and more cheap chips are piled up on the table?
The crypto market, led by Bitcoin, is now unable to escape from the market macro and traditional financial manipulation. The previous risk aversion and gray operations have also been put on the table. Bitcoin has become a reserve asset for a country or financial institution, and it is always paying attention to good news and high-quality chip prices. However, this industry must always be clear that the advantage of not losing the original chips is still there.
A single move can affect the entire body, let alone a thousand threads that are intertwined.
At the opening of Monday, the Japanese and Korean stock markets suffered a major collapse, like a blow to the face, followed by damage from all directions and angles. Global stock markets plummeted and the "Black Monday" that threatened to kill you shocked the world.
The Nikkei 225 index closed at 31458.42, down 4451.28 points, the largest drop in history, a drop of 12.4%. At the same time, all component stocks fell, with SoftBank Group falling nearly 19%, Tokyo Electron falling more than 18%, and Mitsubishi UFJ Financial falling nearly 18%. During the trading session, the Nikkei 225 Volatility Index futures were suspended for the second time due to the circuit breaker mechanism.
South Korea's stock market also saw a sharp drop, with the Korea Composite Index closing down 8.77% at 2441.55 points, and the Korea Kosdaq Index falling more than 11%. In terms of component stocks, Posco and LG Chem fell nearly 12%, Samsung Electronics and Kia Motors fell more than 10%. During the session, the Korea KOSPI Index fell 8%, triggering the circuit breaker mechanism, and trading was suspended for 20 minutes; the Korea ChiNext Index also triggered the circuit breaker mechanism after a sharp drop of 8%.
In addition to the Japanese and Korean markets, global stock markets also saw a collective adjustment. In the Asia-Pacific market, the FTSE Singapore Straits Index, the FTSE Bursa Malaysia Composite Index, the Australian S&P 200, the Indonesia Composite Index, the MSCI Vietnam and the Indian SENSEX30 Index all fell.
Major European stock indices also fell across the board at the opening, with the Euro Stoxx 50 index down 2.94%, the German DAX index down 2.43%, the British FTSE 100 index down 1.77%, and the French CAC40 index down 1.29%. Among them, the market-wide circuit breaker mechanism of the Turkish stock market was triggered twice after the opening.
It is worth mentioning that the volatility of the US stock market last week has aroused strong market attention. Last week, the Nasdaq fell 3.35% and the S&P 500 fell 2.06%.
The crypto market is also at risk of falling simultaneously. BTC was not supported after falling below $60,000, and fell all the way to $50,000, with a minimum of around $49,000, a daily drop of more than 15%. ETH fell by more than 20% in 24 hours, once falling below $2,200, wiping out all gains in 2024. According to CMC market data, the total market value of cryptocurrencies across the entire network fell to as low as $1.76 trillion, a 24-hour drop of nearly 20%.
Why are all the markets falling? What is the information gap that we cannot yet understand? Ma Hou’s opinion summarizes:
1. Macro market. The Bank of Japan’s interest rate hikes and the continuous appreciation of the yen have led to a significant decline in yen carry trades. The so-called “yen carry trade” means that the yen, as one of the currencies with the lowest interest rates in the world, has always been used as an important lending currency. Borrowing low-interest yen to purchase other non-yen assets with higher returns is a relatively ideal transaction.
However, as the yen appreciates sharply, investors who borrowed yen face huge potential losses. When repaying the yen loan, although the interest rate of the yen borrowed at that time is still low, the income obtained from non-yen assets may not make up for the huge loss of exchange rate. The greedy boomerang hits the arbitrageurs in the ass.
2. The beautiful non-agricultural data and the interest rate cut storm have caused concerns about economic recession. At the end of July, the US economic data continued to cool down, the PMI data fell beyond expectations, and the non-agricultural and unemployment data fell sharply. The market expected to overdraw from the interest rate cut expectations, quickly passed the soft landing interest rate cut transaction, and directly fast-forwarded to the hard landing recession transaction. On the one hand, the relative attractiveness of US stocks has weakened. On the other hand, the additional exchange gains that overseas investors can obtain from investing in US stocks may be reduced. Everyone is waiting for the Fed to cut interest rates, but a rate cut is a cup of desert poison rather than a life-saving elixir.
3. The situation in the Middle East is tense. Blatant assassinations, bombings that ignore rules, and preparations for war that are escalating in secret, S3 seems to be impatient. Squid's operation has made the Middle East a powder keg for global war. Arab brothers are poor, but their determination to fight the devil in spirit is not low. Hamas also has the aura of a pioneer in the liberation struggle. Wars have caused great suffering to people. Don't underestimate the capital's escape. You can doubt their morality but you cannot deny their information gap in protecting property.
4. Crypto "insiders". The Big Beautiful spot Bitcoin ETF has suffered the largest outflow of funds in three months, and the crypto "market maker" Jump Trading is liquidating hundreds of millions of dollars in positions, trying to aggressively reprice cryptocurrencies by selling and short billions of dollars of various cryptocurrencies during the market hours with the worst liquidity, while repeatedly eating up buy orders to ensure the worst execution price.
Since August 3, Jump Crypto, the cryptocurrency division of Jump Trading, has marked an inflow of approximately $300 million in funds to its addresses. During the same period, the trading company's wallet has seen an outflow of approximately $80 million, mainly to cryptocurrency exchanges such as Coinbase, Gate.io, and Binance. The flow of funds is still continuing.
There are thousands of reasons for the crash, and different events can lead to different outcomes. This time the crypto market crash is not just a technical correction within the crypto market, but is affected by the global financial environment, which is more uncertain. The price of Bitcoin may continue to be affected by factors such as market sentiment, macroeconomic data, policy changes, and geopolitical conflicts, showing a volatile trend.
When the storm comes, some people are worried that they won't be able to sell the fish while others are frantically buying up and hoarding. There are so many A Qiangs selling and killing fish in the fish farm, but why is it that only Gao Qi Qiang has become a domineering boss? Because he read Sun Tzu's Art of War and firmly implemented it, and he succeeds when he practices.
More Articles:
Does the United States want to become a Bitcoin superpower or a leader in Web3 innovation? Why did Trump only mention the gold value of Bitcoin?
Crypto promise from President-elect Trump: Make America the world’s cryptocurrency capital and Bitcoin superpower!
The more tasks you complete, the more tokens you get! Crypto task platform Layer 3 airdrop is coming soon, pay attention to the money-grabbing party!
Bitcoin suddenly rose to $68,000, and it was because of a possible rumor? Bitcoin may become a strategic reserve asset of the United States
Gunshots can’t scare tough guys, Trump + Vance’s new “MAGA” combination! The crypto dream team is born!
A historical moment, the opposite of danger and opportunity! Trump's assassination and the reaction of the crypto community, the crypto trend is unstoppable
Strange dogs are coming again! Dog concept meme on TON chain: DOGS is going viral!
The main force of Bitcoin's decline came from Asia? Why did the crypto black swan happen here?
Is the 2024 crypto bull market coming to an end?
"Statement: According to the Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation issued by the Central Bank and other departments, the content of this article is only for information sharing and does not promote or endorse any business or investment behavior. Readers are requested to strictly abide by the laws and regulations of their region and not participate in any illegal financial activities."
