The good news is that global stock markets rebounded today. The Japanese stock market rebounded violently by 10%, the Nikkei 225 index expanded its gains to 10%, and the South Korean KOSPI index also expanded its gains to 5%.
The crypto market has seen a rebound, with Bitcoin returning to $56,000 and Ethereum returning to $2,500.
Altcoins as a whole also saw a rebound, with the Meme coin sector performing the strongest, with Sats, Dog, and Brett all rising by more than 25%.
The global financial crash was mainly caused by the following reasons:
1. Macroeconomic recession signals and a sharp correction in US stocks
The lower-than-expected non-farm payrolls data released by the United States raised investors' concerns about a recession, causing a sharp drop in the stock market.
The bad news snowballed and affected global stock markets.
2. Geopolitical conflicts escalate
The intensification of conflicts in the Middle East, especially the assassination of Hamas leaders, has made global investors uneasy. Everyone is looking for safe places to store money and is no longer willing to take risks in investment.
3. Jump Trading Liquidation Behavior
Jump Trading sold a large amount of Ethereum, which caused panic in the market because everyone thought that Jump might have foreseen a worse situation and therefore followed suit.
4. Bank of Japan raises interest rates
The Bank of Japan raised interest rates, which made borrowing more expensive and affected those who made money by borrowing, forcing them to sell their assets to pay off their debts.
5. Uncertainty of the US election
Trump's approval rating has dropped, while his rival Harris's approval rating has risen. This has made the market feel uncertain because different presidents may have different policies.
6. Frequent large-scale liquidation and liquidation events
Because the market fell so sharply, many people had to sell their investments to cut their losses, which further exacerbated the market's decline.
In addition, the news worth noting is:
1. Yesterday, the trading volume of US spot Bitcoin ETF hit a new high since March 26 this year, reaching US$5.7 billion. Among them, BlackRock IBIT's trading volume was US$2.94 billion.
This shows that when the market plummets, American investors are still optimistic about the future trend of Bitcoin and are increasing their investment.
2. Binance CEO tweeted: The recent sharp drop in cryptocurrency and stock prices was affected by macroeconomic factors.
But he believes that this does not indicate a long-term negative trend. The possibility of market volatility remains high due to possible interest rate cuts by the Federal Reserve and geopolitical fluctuations.
3. According to Spot On Chain monitoring: Ethereum fell by more than 20% yesterday, and Justin Sun lost $280 million.
He has accumulated 377,590 Ethereum through 3 wallets since February 8, 2024. But now Ethereum is trading well below his average purchase price of $3,051.
In addition, according to Ember’s monitoring, Sun Ge is still increasing his Ethereum holdings. Sun Ge’s new address used 37 million USDT to buy 16,236 ETH at an average price of 2,279 USD.
This shows that when facing a market crash, big investors ignore short-term losses and only focus on long-term trends.
Overall, yesterday was another day that witnessed history, which can be called the 8.5 event in the cryptocurrency circle. As global stock markets are recovering today, the crypto market has also temporarily stabilized.
The current fear and greed index has reached 17, a new low since July 2022, reaching the stage of extreme fear.
This means that the cryptocurrency market has reached a stage bottom. Next, it is time to buy the bottom. Friends who need reference can follow Zhuye and plan the entire bull market together.
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