What Really Caused Bitcoin, Ethereum To Crash? Analyst Has Answers
Portfolio Pulse from Murtuza Merchant
Jim Bianco of Bianco Research attributes the recent crash in Bitcoin and Ethereum to the Bank of Japan's unexpected interest rate hike, which led to a significant global market downturn. The yen carry trade unwinding caused ripple effects, including a 20% drop in the Japanese stock market and a 5% loss in the dollar's value against the yen. The cryptocurrency market saw over $1 billion in liquidations, with Bitcoin dropping nearly 19% and Ethereum falling by almost 25%. Bernstein's report suggests the downturn is due to broader market fears rather than crypto-specific issues and highlights potential recovery if U.S. recession fears lead to rate cuts and increased monetary liquidity.

August 06, 2024 | 8:46 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Bitcoin experienced a significant drop of nearly 19% following the Bank of Japan's unexpected interest rate hike, which led to a global market downturn and unwinding of the yen carry trade.
The unexpected rate hike by the Bank of Japan led to a massive unwinding of the yen carry trade, causing a significant drop in Bitcoin's value. The broader market fears amplified the impact on Bitcoin.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Ethereum faced a severe loss of nearly 25% due to the Bank of Japan's unexpected interest rate hike, which triggered a global market downturn and unwinding of the yen carry trade.
The Bank of Japan's unexpected rate hike caused a significant unwinding of the yen carry trade, leading to a severe drop in Ethereum's value. The broader market fears further exacerbated the impact on Ethereum.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100