Reserve Dollar

Bitcoin

Reserve

Bitcoin (BTC) attempted to stabilize at the Wall Street open on August 5 as the crypto markets recovered from a significant sell-off. 
Data from Cointelegraph Markets Pro and TradingView showed a $4,000 rebound in BTC’s price after the U.S. trading session began, bringing it near $55,000. This recovery followed a dip below $50,000, the first time since February, causing concern among traders who feared further declines as traditional financial markets reopened. 
Risk assets experienced relatively mild losses, with the S&amp;P 500 down 3% and the Nasdaq Composite Index 3.7% lower at the time of writing. U.S. markets thus avoided the severe losses seen in Asia, where Japan’s Nikkei 225 suffered its worst two-day combined losses in history. 
Mass selling by trading firm Jump Trading was reported to have significantly impacted the crypto market’s sharp reaction. The Kobeissi Letter attributed the market turmoil to the unprofitable Japanese yen carry trade, exacerbating existing market pain. “The solution to this problem is not as simple as it may seem and may require a separate thread,” it explained on X. “This is a vastly different situation than previous market downturns.” 
The VIX volatility index reached levels seen only during the 2008 global financial crisis and the March 2020 COVID-19 market crash. Charles Edwards, founder of Capriole Investments, noted the similarities to early 2020: “Some eerie similarities to early 2020. Stocks overvalued, growing risk of recession, rising unemployment, sharp correlated global market moves down,” he told X followers. 
Edwards suggested that the Federal Reserve would likely intervene with early rate cuts and liquidity measures, but the timing remains uncertain. “At some point, the Fed will step in, likely with early rate cuts and probably liquidity too. But when? Until then, expect ALL markets to correlate.” 
An emergency meeting by the Federal Reserve was reportedly under consideration, with varying predictions on the outcome. Jeremy Siegel, a professor at the Wharton School of Business, predicted, “I’m calling for a 75 basis point emergency cut in the Fed funds rate, with another 75 basis point cut indicated for next month at the September meeting – and that’s minimum,” in an interview with CNBC. The Federal Open Market Committee (FOMC) meeting next month is now expected to trigger a 0.5% rate cut, according to CME Group’s FedWatch Tool.

BTC Rebounds After Brutal Sell-Off Amid Japan Sell-Off

Crypto Intelligence

Other articles published on Aug 6, 2024

Bitcoin Price Rebound to $56,000 Sparks Optimism Despite Cautious Sentiment

SEC Moves to Amend Complaint Against Binance, Binance.US, and Zhao: Solana (SOL) May Be Impacted

US Economic Downturn Concerns: The Ripple Effect on Cryptocurrency Markets

ARK Invest buys $17.77 million COIN, $11.19 million HOOD as BTC fell under $50k

Snoop Dogg Net Worth: A Closer Look at His Wealth and Success

TrumpCoin crashes 90% amid market chaos

Join our free newsletter for daily crypto updates!