Global markets turned upside down yesterday, so to speak. Concerns that the US would enter a recession and international tensions turned markets upside down. In addition, the Bank of Japan's decision to raise its benchmark interest rate to 0.25%, up from its previous range of 0% to 0.1% at the end of last month sent shockwaves through global markets. And while global stock markets experienced severe selling pressure yesterday, bonds rallied.
The US Federal Reserve (Fed) is still continuing its tight monetary policy, and at its meeting on Wednesday, it kept the policy rate steady while signaling that it could cut interest rates for next month's meeting, but this was not enough to reassure markets. While raising interest rates is an important tool in the fight against inflation, it also causes the economy to stagnate. The employment data released in the US on Friday shook the markets. While the expected 175 thousand, July employment increased by 114 thousand people, which increased concerns about a recession in the economy.
Experts believe that the Fed was late in lowering interest rates, just as it was late in raising interest rates. Recent developments and data have strengthened the possibility of a recession, which has increased selling pressure and caused sharp declines in the markets. And when the latest developments in the Middle East were added, there was a selling wave on Friday. And the selling pressure intensified in Asian markets on the first day of the week.
The Bank of Japan's decision to raise the benchmark interest rate to 0.25% sent shockwaves through global markets, with the Japanese stock market experiencing its worst day since 1987. Yesterday, global markets were literally turned upside down, so to speak.
There were sharp declines in crypto markets, as in global markets, and many cryptocurrencies, especially Bitcoin, fell sharply. Altcoins in particular experienced very sharp declines. But later, many began to recover.
Bitcoin fell below $50,000 for the first time since February 14, 2024, but did not stay there for long before quickly returning above $50,000. Bitcoin is currently trading at $55,373.
In the short term, declines may deepen further, but I believe this will not last long, at least in the crypto markets, so personally I am not worried about my crypto assets. However, it is still useful to be more careful against more violent fluctuations.
These are my personal thoughts, what do you think about the crypto markets?
Thank you for reading
@rtonline
This is not investment advice, I am just talking about current developments and only my personal opinions. As with all money markets, anything can happen in the crypto market at any time, so please do your own research before investing.
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