Dear Friends,
We have seen the blood bath in the crypto markets to start with this week!
The unemployment rate hiked to 4.3% according to the US Job data and and the fear of recession contributed this worldwide.
We have seen the crypto markets were crashed more than 15% yesterday and more than $ 200 billion were wiped out of the market.
BTC's price came down< 50K $ and ETH has hit 2100 $ by yesterday.
The panic selling was witnessed wide over in the market.
But, the Bitwise CIO Matt Hougan said Monday that he views the weekend’s violent sell off in crypto/equities as a Bitcoin buying opportunity.
In a Twitter thread, he said he likened the market crash to March 12, 2020 – a day of “chaos” that pre-empted historic new highs for crypto over the following months.
He compared and reminded the incidents that were correlated this situation in 1987 where the Dow Jone Industrial Average had worsened, BTC was squeezed to 37% and grounded at $ 4971 from $7911.
But, BTC eventually reached as high to $64000 within a year- following the announcement of lower interest rates by the central banks.
Yes, he is right.
Even though there is a panic button hit worldwide and selling in panic by everyone is being witnessed.
But with the current unemployment rate, there are high chances that the interest rate would be decreased in the coming months.
The FED Chairman in his latest speech said that though the interest rate is unchanged in July 2024, there were many chances to reduce in the September 2024 months.
We will not be surprised that there would be emergency and special meeting to be held in between to announce the rate cates too.
If it is done, there will be a good thing for the market.
At the time of writing this article, the global crypto market is valued at USD 1.97 Trillion.
BTC is trading at $ 55845 and ETH is trading at $2533 at present.
Until then, we need to capitalise any opportunity for investment that the market gives in the sudden crash like this.
Let's hope positive and stay invested in the market.
