Analyst: The main driving factor for this round of market decline is not the recession of the US economy, but missing the opportunity to cut interest rates
ChainCatcher news, cryptocurrency analyst Alex Krüger posted on social media saying: "The market's collapse this round is clearly driven by macro factors, not specific to the cryptocurrency industry. Moreover, it is becoming increasingly clear that the main driving factor is not the collapse of the US economy (after last Friday's employment data was released, discussions about a US economic recession heated up).
It seems that the policy mistake was not that the Federal Reserve cut interest rates too slowly, but that it did not cut them when Japan raised its rates. This statement does sound a bit like 'wisdom after the event', and we now need US economic data to confirm this.
The chart shows where selling began last week - right after Wednesday's FOMC statement release. It coincides with Nikkei Index opening time.
A financial crisis triggered mainly by a large number of Japanese leveraged speculators would be much better than one caused by America falling into recession.
As for American data, current focus is on job market so special attention should be paid to initial claims for unemployment benefits this Thursday (usually non-market moving data), as well as state employment data due out August 16th (provides detailed state-level employment figures and usually overlooked by markets)."

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Injective Launches On-Chain NVIDIA H100 GPU Rental Rate Marketplace
Data: Institutions Bought Over $4.7 Billion Worth of ETH Last Week
Trending news
MoreCrypto prices
More








