Bankless Live: Did This Crypto Cycle Just Come To An End?
23 snips
Aug 5, 2024 Global equity markets face turmoil, sparked by shifts in Japanese policy. The cryptocurrency market, particularly Ethereum, experiences a sharp decline amidst economic uncertainties. The rise of Bitcoin ETFs stirs market sentiment, while DeFi platforms like MakerDAO showcase resilience amid the chaos. Geopolitical tensions affect financial landscapes, prompting discussions on Warren Buffett's strategies. Insights into the future of trading and market trends provide thought-provoking speculation about the ongoing cycles and necessary innovations in the crypto space.
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Yen Carry Trade Explained
- The "yen carry trade" involved borrowing low-cost yen to invest in higher-yield US assets.
- A small BOJ interest rate hike unwound excessive leverage, impacting global markets.
Crypto's Weekend Reaction
- Crypto reacted strongly over the weekend, with ETH dropping significantly.
- This drop mirrored a similar decline in the Japanese Nikkei, suggesting global market instability.
Jump Capital's ETH Dump
- Jump Capital sold large amounts of ETH, impacting its price.
- Several factors contributed to market instability like rumors of war, political uncertainty and a weakening US economy.