Japan stock meltdown: why it rattled the crypto market
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Japan's stock market plunged 12% on August 5, triggering losses in stock markets worldwide; fear of a slowdown in the US economy is a key reason; US job market data reported the highest unemployment rate since October 2021 and weaker than expected job growth; the chairman of the US Federal Reserve suggested an interest rate cut in September; the cooling of the US job market led to speculation that the Fed has waited too long to act; shares of tech companies and cryptocurrency markets also declined; Bitcoin's price dipped below $50,000 after trading close to a record $70,000; the cryptocurrency sell-off is attributed to fears of a US recession; cryptocurrencies have become more integrated into the financial system and are no longer immune to volatility spillovers from non-crypto markets; the value of cryptocurrencies is largely driven by investor sentiment and can respond more severely to shocks than stock markets; crypto assets are volatile and prices may still have room to fall further; early academic research on cryptocurrency bubbles concluded that Bitcoin's true price is zero.
#Japan #StockMarket #CryptoMarket #UsEconomy #Recession #InterestRates #TechCompanies #Bitcoin #Cryptocurrencies
https://theconversation.com/japan-stock-meltdown-why-it-rattled-the-crypto-market-236266
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