Bitcoin crashed due to Japanese market collapse after interest rate hike, impacting US markets negatively.

From Investing.com

August 6, 2024 10:00 AM:

Nassim Nicholas Taleb explains the recent Japanese market collapse that led to Bitcoin plummeting. He attributes the crash to the Bank of Japan’s decision to raise interest rates after 33 years of keeping them at zero, and injecting quantitative easing measures for 23 years, which he believes comes at a cost.

Taleb notes that Japan’s QE strategy has been hailed as successful by some experts, while criticizing the US for its inflation despite combining tightening and loosening strategies. Experts worldwide are questioning the timeliness of Japan’s interest rate hikes, with many waiting to see the direction of the US economy before making further moves.

The Japanese stock market crash affected US markets, causing Bitcoin to drop 18% from $61,000 to $49,750. Currently trading at $55,140, Bitcoin was further impacted by the US stock indexes nosediving. Bitcoin advisor to the El Salvador president, Max Keiser, suggests maintaining unchanged interest rates to release more market pressure.

Read more at Investing.com: ‘Black Swan’ Author Taleb Breaks Down Bitcoin Crash Top Reason By U.Today