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Financial Panic Triggers $1,220,000,000 in Crypto Liquidations As Robinhood, Japan, Korea and Turkey Markets Halt Trading

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3 months ago

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Global markets are starting the week deep in the red amid a large sell-off partially triggered by the Bank of Japan’s decision to raise rates.

Following the bank’s decision to raise rates to 0.25%, Japan’s Nikkei 225 Index had its worst day since March 2020, dropping 5.9%.

Then, on Monday, the Nikkei experienced its worst day in history, plummeting 12.6%.

Trading was halted several times on the Nikkei, Korea’s KOSPI, Turkey’s Borsa, as well as Robinhood, the biggest retail trading platform in the world.

Meanwhile, crypto markets have been hammered, and according to data aggregator Coinglass, over $1.22 billion in liquidations have been triggered – mostly long positions on Bitcoin (BTC) and Ethereum (ETH).

The extent of the damage has yet to be fully determined, but there is some speculation that one or more large players in the industry may have been hit badly by the market move.

However, speaking with CNBC early Monday, Fundstrat’s Tom Lee said the recent episode is more likely a “short and scary” move rather than the beginning of a long-term downtrend.

Lee suggests the Volatility Index (VIX), a popular gauge of the stock market’s expected volatility, could be the indicator that signals the next move in the short term, but says that uncertainty stemming from Japan shouldn’t significantly effect US markets.

“You have to watch the VIX, and when the VIX peaks and starts to roll over and fall down, the recovery can be just as quick. I think a lot of this depends on whether financial conditions in the US start to tighten, meaning do markets seize up. But with interest rates falling, the consumer’s still in pretty good shape, I think on the other side of this it’ll look like a growth scare…

The 2-Year is signaling the Fed is behind, because the 2-year has fallen further, but it does seem as we look back a lot more this is because of the surprise hike from Japan, and the sort of knock-on effects from there. If that is the primary source of the reaction, I know it’s going to be tumultuous for markets, but for the US economy and it’s not necessarily bad news, and I think that’s we can bounce.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Bank of Japan Keeps Interest Rates Unchanged, Bitcoin and Altcoin Rally Ahead?

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2 months ago

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September 20, 2024

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In a major macro development, the Bank of Japan (BOJ) has decided to keep interest rates unchanged at 0.25%. The development sent the Nikkei index soaring by 2.10% and 700 points today itself. As the fears of the further unwinding of the Yen carry trade subside, Bitcoin and altcoins have also been showing strength with further upside.

Bank of Japan on Future Rate Hikes

In the latest policy update, the Japanese central bank has revised its assessment of consumption. Thus, it showed confidence in a solid economic recovery that would allow the central bank to raise interest rates again in the coming months.

“Private consumption has been on a moderate increasing trend despite the impact of price rises and other factors,” the BOJ said in a statement.

The markets are keeping a close watch on how Governor Kazuo Ueda plans to roll out future BOJ rate hikes amid global economic uncertainty. Moreover, the unprecedented rate hikes this year by the Bank of Japan have exacerbated the fears of Yen carry trade unwinding and the rising Japanese Yen. The Japanese central bank ended the negative interest rates earlier in March, shifting away from its decade-long stimulus program to boost inflation.

In the last month of August, the core consumer inflation hit 2.8% rising for the fourth consecutive month. If inflation remains on track to hit its 2% target, the BOJ will continue with its rate hike said Ueda. The recent Reuters report suggests that a majority of economists expect the BOJ to raise interest rates in December.

Courtesy: Reuters

Bitcoin and Altcoin Rally Ahead?

With the Bank of Japan holding interest rates steady, risk-ON assets like cryptocurrencies are enjoying the upside. The Bitcoin price surged by 3% moving further closer to $64,000. On the other hand, altcoins led by Ethereum have registered gains anywhere between 4-10%.

Bitcoin has been showing strength following the Fed rate cuts earlier this week, for the first time in nearly four years. Interestingly, per the data from Sanitment, this strong recovery has come without any high FOMO. This shows that the Bitcoin and altcoin market recovery is healthy and can continue going further.

Courtesy: Santiment

On the technical chart, the Ethereum price is also showing signs of recovery with the recent jump. Despite the Vitalik Buterin address moving ETH recently, the below chart shows a strong recovery with the potential to rally to $5,000.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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BOJ Gov Ueda Confirms Rate Hike, Bitcoin Price Crash Imminent?

Published

2 months ago

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September 3, 2024

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Bank of Japan (BOJ) Governor on Tuesday said the central bank will raise interest rates further if the economy and prices perform as expected. Japanese yen rose toward 146 against US dollar, rebounding from two-week lows amid a hawkish outlook on Bank of Japan monetary policy. Is another Bitcoin price crash imminent due to Japanese yen carry trades?

BOJ Gov Reiterates Interest Rates Hike

Bank of Japan Governor Kazuo Ueda in a document submitted to a government panel chaired by outgoing Prime Minister Fumio Kishida reiterated further rate hikes, Bloomberg reported on September 3.

The recent affirmation reminded investors that despite the market meltdown triggered by the BOJ’s July rate hike, the central bank will raise borrowing costs provided the bank’s forecasts materialize. Japanese yen rose over 146 against the US dollar today after the remark.

Two-thirds of economists surveyed pointed to a rate hike again by the BOJ by the end of the year. Notably, 41% of respondents expect December as the most likely timing. On the contrary, Pacific Investment Management expected a rate hike in January.

Japan’s 10-year government bond yield climbed above 0.92%, hitting a four-week high on hawkish outlook by Bank of Japan.

Can Bitcoin Price and Crypto Market Crash?

As CoinGape earlier reported, Japan’s biggest brokerage firm Nomura Holdings confirmed that Japanese yen carry trades that crashed markets were making a comeback. Should the interest rate differences between the US and Japan remain elevated, more investors will enter Yen carry trades. This risks another Black Monday-type Bitcoin price crash, triggering sell-offs in the broader crypto market.

However, US Fed Chair Jerome Powell hinted at Fed rate cuts starting in September. According to CME FedWatch data, there’s a 67% odds of a 25 bps rate cut in September, with markets still expecting 100 bps rate cuts this year. This would prevent a market meltdown as the differential will narrow.

BTC price struggles to break above $60,000 amid market uncertainty. BTC pared today’s gains, with the price currently trading at $59,104. Furthermore, the trading volume has decreased by 20% in the last 24 hours, indicating decline in interest among traders.

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Varinder Singh

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Ethereum Poised for Recovery as Bank of Japan Governor Softens Rate Hike Talk

Published

3 months ago

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August 7, 2024

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Ethereum (ETH) could be setting the stage for a massive comeback after the recent developments surrounding the Bank of Japan (BOJ)’s interest rate decision. Additionally, the sentiment around ETH seems to be shifting toward a positive note after the recent market crash.

Bank of Japan Backpedels Interest Rate Hike Talks

Bank of Japan’s deputy governor, Shinichi Uchida, clarified in the early Asian session on Wednesday that the central bank will not raise interest rates amid uncertain market conditions. This remark contradicts last week’s hawkish comments by Central Bank Governor Kazuo Ueda.

These comments from Uchida caused the Nikkei Index to surge by 5% on Wednesday, and the positive effects could also be seen across the crypto and stock markets. Ethereum is in the perfect position to trigger a massive comeback.

Three Reasons for Ethereum Price Comeback

BOJ’s decision is the main bullish driver that has uplifted the stock markets worldwide. In addition to these, Ethereum has three key reasons why it could witness a massive recovery rally. 

  1. According to James Butterfill, CoinShares’ Head of Research, investors flocked to ETH in the first two days after the crash while avoiding BTC.
  2. Spot Ethereum ETFs saw a net flow of $98.3006 million despite the recent market crash, illustrating the above point. 
  3. Nasdaq and BlackRock have filed with the US Securities and Exchange Commission (SEC) to list and trade options for spot Ethereum ETF. 

These three developments are fundamental and are likely to have a huge impact on the price of Ethereum, especially if the macroeconomic conditions settle down. 

Ethereum price prediction shows that the $2,618 is the next key resistance level to watch. Overcoming this hurdle could allow bulls to propel ETH to the $100 range, stretching roughly from $2,900 to $2,800. Flipping $2,618 into a support floor would allow Ether price to attempt a retest of the $3,000 psychological level. 

Ethereum Price 1-day chartEthereum Price 1-day chart

On the other hand, if Ethereum price fails to overcome the $2,618 hurdle, it would signal that the bulls are weak, which could be attributed to the uncertain macroeconomic conditions. This development could see ETH price to revisit the $2,190 support floor. 

Frequently Asked Questions (FAQs)

ETH’s comeback is driven by the Bank of Japan’s decision not to raise interest rates, shifting sentiment, and three key reasons: investor inflow, spot Ethereum ETFs, and Nasdaq/BlackRock’s SEC filing.

The three reasons are: investors flocking to ETH, spot Ethereum ETFs seeing a net flow of $98.3 million, and Nasdaq/BlackRock’s SEC filing for spot Ethereum ETF options.

The next key resistance level is $2,618; overcoming this could propel ETH to the $100 range ($2,900-$2,800) and potentially retest the $3,000 psychological level.

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Akash Girimath

Akash Girimath is an engineer at core, but is interested in the chaos of the financial markets. Akash is senior report and analyst who also trades cryptos on a regular basis and maintains a small crypto fund for friends and family.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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