Fast Bird's Eye View of Market Collapse

"Monero down 5.71%, Bitcoin down 15.74%, Japan's Nikkei 225 down over 12% in its biggest-ever daily loss"

Fast Bird's Eye View of Market Collapse

Recap


Monero down 5.71% - $144.53
Bitcoin down 15.74% - 51,593
Nasdaq down 3.33%
S&P500 down 3.66%
Japan’s Nikkei 225 down over 12% in its biggest-ever daily loss

Fast History:

–From 1993 to 2021, Japan had essentially no inflation
–From 2021 to now, Japan’s inflation is rising

In response to this:

–Bank of Japan raised interest rates
–This strengthens the Yen

At the same time:

–US Federal Reserve is lowering
–Weak US jobs

So:

This sent the USD to Japanese Yen exchange rate down.
(weak dollar, strong yen)

Because:

Since 1993 Japan’s currency has been nearly free to borrow
And the central bank can print as much as it wants

Then:

Everyone and their mother borrows yen (at lower interest rates) to buy assets overseas at higher yield,

But now:

Huge players are having to pay more to borrow,
As the exchange rate moves against them,

Therefore:

They sell.

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[SP]

Aug 5, 2024

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