Bankless ROLLUP: Crazy Markets Week | Prediction Markets Bad? | Zora Release | More Gensler Ls | Trump’s DeFi Sons
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Aug 9, 2024 This week saw wild swings in crypto markets, raising questions about the future of the 2024 bull run. Elizabeth Warren’s focus on prediction markets ignited backlash from the crypto community. Meanwhile, SEC Chair Gary Gensler faced more challenges, and Zora's exciting NFT advancements turned heads. In a surprising twist, even Trump's children are exploring the world of DeFi. With rising interest rates causing liquidity issues, the unpredictable nature of these markets continues to stir intrigue.
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Market Volatility
- Crypto markets experienced extreme volatility comparable to the 2020 COVID crash and the 2008 financial crisis.
- The VIX, a measure of market fear, spiked dramatically, indicating widespread panic.
Yen Carry Trade Unwinding
- The unwinding of the Japanese yen carry trade, where investors borrowed at low Japanese interest rates and invested in higher-yielding US assets, is a primary factor.
- The Bank of Japan's decision to raise interest rates even slightly triggered this unwinding.
Leverage Warning
- If you survived the crypto liquidations without losses, congratulations.
- Be cautious when using leverage.
