In August 2024, the crypto markets experienced a significant downturn due to Japan's fiscal crisis, highlighting their vulnerability to liquidity shocks. Bitcoin, after reaching an all-time high of $82,000, dropped by 17%, while Ether fell below $3,000. Other altcoins like Solana, Avalanche, and Polkadot also suffered losses. The trigger for this market turmoil was Japan's sovereign debt market unraveling, leading to a global liquidity shock. Japan's debt-to-GDP ratio exceeded 260%, causing concerns about fiscal stability. The Bank of Japan's monetary policy adjustments further exacerbated the situation, impacting global bonds, currencies, and equities. Despite the market turbulence, Bitcoin's long-term value proposition remained strong, showcasing its resilience compared to traditional fiat systems. The crisis underscored the need for Japan to address its fiscal challenges and highlighted the potential role of cryptocurrencies in a changing global financial landscape. Read more AI-generated news on: https://app.chaingpt.org/news

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