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Bitcoin has led a global crypto market downturn in the past few days, with the asset down to <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-fall-below-60000-again-analyst-reveals-trend-for-btc/" target="_blank" rel="noopener ">as low as $49,751</a> on August 5. This significant plunge from Bitcoin has been attributed by many to the downturn in the Japanese markets. 
<h2 id="the-trigger-in-japan">The Trigger in Japan</h2> 
Speaking on the crash, Nassim Nicholas Taleb, a risk analyst, author of “The Black Swan” and a well-known&nbsp;Bitcoin detractor, sheds light on the origins of the recent <a href="https://www.newsbtc.com/news/investors-pull-back-528-million-vanishes-from-crypto-funds-amid-economic-fear/" target="_blank" rel="noopener ">market disruptions</a> that have rippled through to cryptocurrencies. 
On Monday, the Japanese stock market fell severely, dropping by more than 10%.&nbsp;The&nbsp;<a href="https://www.livemint.com/market/stock-market-news/asian-markets-rebound-nikkei-jumps-over-10-after-a-crash-into-bear-market-11722911468368.html" target="_blank" rel="noopener nofollow">report said</a>&nbsp;this plunge came “amid risk from a stronger yen, tighter monetary policy, and concern over the US recession.” 
The narrative begins with Japan’s economic policies, where after maintaining zero interest rates for an unprecedented thirty-three years coupled with nearly two and a half decades of quantitative easing, the Bank of Japan (BOJ) found itself cornered into a position where adjustments seemed inevitable. 
The abrupt decision by the BOJ to raise interest rates led to a sharp downturn in the Nikkei 225, a major stock index, which in turn sent shockwaves across global markets, including the <a href="https://www.newsbtc.com/bitcoin-news/will-august-again-be-a-drag-for-bitcoin-heres-what-historical-data-says/" target="_blank" rel="noopener ">cryptocurrency sector</a>. 
According to Taleb, this sharp pivot in policy was a long time coming, as the artificial suppression of interest rates and excessive liquidity injection often come with hefty long-term costs. 
The Japanese approach, often hailed as a <a href="https://www.newsbtc.com/bitcoin-news/is-a-major-bitcoin-dip-coming-what-the-coinbase-index-tells-us/" target="_blank" rel="noopener ">successful&nbsp;</a>quantitative easing model, now faces critical scrutiny as it appears the bill for years of economic manipulation is due. Taleb particularly noted in the post on X: 
<blockquote>
 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). 
</blockquote> 
<h2 dir="auto" lang="en" data-testid="tweetText">Is Bitcoin Safe?</h2> 
Bitcoin dipped to a 7-month low during the global market plunge, dropping below $50,000. This fall impacted the crypto market so much that the total liquidations surpassed $1 billion. 
Given this significant negative impact attributed to the plunge in the Japanese market, some might question if Bitcoin is still safe, especially as a safe haven. 
However, it is worth noting that Bitcoin has since proved to be a digital asset worth considering as a safe haven when it comes to times like this. In March 2023, when <a href="https://www.newsbtc.com/news/silicon-valley-bank-falls-will-us-interest-rates-fall-to-3-75/" target="_blank" rel="noopener ">major banks in the US</a> were collapsing, Bitcoin saw a rise to as high as $29,000—a notable increase from its lowest levels below $20,000 that month. 
&nbsp; 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/KxFIPkTu/" alt="Bitcoin (BTC) price chart on TradingView" width="2770" height="1496"> 
&nbsp; 
Besides, it is also worth noting that not only Bitcoin was a victim of the impact of this Japanese market crash, as several other major crypto assets, including Ethereum and Solana, experienced a drastic fall. For context, Ethereum fell as low as $2,197—a low not seen since January of this year; Solana also bore the brunt, dipping to $110. 
Aside from these major cryptocurrencies, <a href="https://www.newsbtc.com/bitcoin-news/will-august-again-be-a-drag-for-bitcoin-heres-what-historical-data-says/" target="_blank" rel="noopener ">traditional assets</a> also received their share of impact, with Nvidia, Tesla, and Apple falling at least 4%. 
This shows that the recent crash didn’t suggest that Bitcoin was unsafe enough; instead, it reveals its correlation to changes in the global economic sector. 
Featured image created with DALL-E, Chart from TradingView

Is Bitcoin Really Safe? New Insights from ‘Black Swan’ Author on Recent Crash

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