Weak US employment data raises recession fears
The US job market data for July released on Friday was disappointing, with only 114,000 new jobs, far below the market's expectation of 175,000. This data is the weakest job growth since December last year, almost close to the lowest level since the COVID-19 outbreak in March 2020, further exacerbating people's concerns about a potential recession.
At the same time, Warren Buffett's Berkshire Hathaway sold about 50% of Apple shares, a move interpreted by the market as a hedge against potential market downturns, which undoubtedly exacerbated market tensions.
In addition, the Bank of Japan's decision to raise its benchmark interest rate for the second time since 2007 has caused huge fluctuations in global financial markets. The Nikkei index experienced its largest two-day drop in history. This event also made global investors uneasy about the future trend of the market.
Despite these adverse factors, some decentralized finance (DeFi) protocols have shown strong resilience and profitability. In particular, Aave, a well-known DeFi lending platform, has still made considerable revenue during the recent market turmoil.
According to Aave founder Stani Kulechov, the platform earned $6 million overnight due to market pressure.
In general, despite the challenging current market environment, some emerging financial models such as DeFi are showing their unique charm and potential.
At this stage, the market is basically to open a position every time it goes down! If you don’t know which ones to choose, then click on my avatar and observe carefully! There is no need to sell, and every subsequent downturn will be a supplement.