Japan’s Nikkei Crash by 20% from July Highs, Crypto Rout Continues

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As a seasoned researcher who has weathered numerous market storms and witnessed the rise and fall of various asset classes, I find myself standing at the precipice of another turbulent phase. The recent sell-off in Asian trading hours, accompanied by the collapse of Japan’s Nikkei and Topix index, has sent ripples across global markets, including the cryptocurrency market.

Recently, there’s been a significant drop in stock prices during Asian trading hours, with Japan’s Nikkei and Topix indexes plummeting over 20% from their July peaks. Fears of a potential U.S. recession have led to a dramatic 13% decrease in the Nikkei index today, causing ripples of concern throughout the wider cryptocurrency market.

At the moment I’m checking the market, it appears that the overall cryptocurrency market capitalization has plummeted by a staggering 18% in just the past day, wiping out over $400 billion. Unfortunately, Bitcoin, my primary investment, is taking a significant hit too, dipping below $52,000, representing a decline of more than 15%. This tumble has extended Bitcoin’s weekly losses to an unfortunate 25%.

Based on recent analysis from CoinGlass, over a billion dollars in crypto assets have been liquidated within the past 24 hours. Out of this staggering figure, approximately $900 million stemmed from long positions, while around $159 million came from short positions. However, according to Santiment, a prominent on-chain data provider, investor enthusiasm remains subdued at present. As we approach the opening of the US market on Monday, several analysts predict that a more significant correction could unfold.

📉😱 Is this a significant drop in price? There has been increased talk about purchasing, but not as much as one might expect given such a drastic fall. A larger reaction is expected when the US market opens on Monday morning, causing a shock. Emotional selling could expedite the timing of cryptocurrency’s recovery.

— Santiment (@santimentfeed) August 5, 2024

Additionally, well-known Bitcoin skeptic Peter Schiff forecasts a significant drop in the Bitcoin ETF market on Monday. He anticipates a decline of approximately 15-30% on that day, due to the launch of trading in the US market.

Schiff wrote:

“I had previously mentioned that Bitcoin would drop below its March low, and indeed it has, currently trading at approximately $51,000. This represents a 20% decrease from its closing price on Friday when the Bitcoin ETFs were traded. Such a significant decline is reminiscent of the ‘Crypto Black Monday’.”

Instead, wealthy businessman Robert Kiyosaki recommends increasing investments in gold, silver, and Bitcoin.

The fall of Bitcoin and other markets is exciting! I’m gearing up to invest more in gold, silver, and Bitcoin. This seems like an excellent opportunity to make a purchase. It appears that this could be the moment for the fearful to act courageously.

— Robert Kiyosaki (@theRealKiyosaki) August 5, 2024

US Futures are Down, Bitcoin Investors Watching Carefully

On Sunday, August 4, U.S. stock futures experienced a substantial drop due to escalating geopolitical conflicts between Iran and Israel. As the threat of war looms and economic instability persists, investors find themselves in a precarious position, hesitating before making any further moves.

1. In the past 18 months, the Volatility Index (VIX) has reached its peak, while the volatility in the bond market has increased even more. Moreover, the jobless rate in the United States has exacerbated existing concerns.

On the previous Friday, the S&P 500 experienced a steep drop of approximately 2%, marking one of its most significant declines in nearly two years. Even larger tech companies have seen steeper falls; the Nasdaq 100 has corrected by over 10% from its highest point.

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2024-08-05 12:21