The recent Bitcoin price crash can be attributed to worsening macroeconomic conditions. Specifically, the Bank of Japan (BOJ) raising interest rates on July 31 and a weak jobs report on August 2 triggered the recent spiraling of cryptos.
Analysis of What's Causing the Market Drop:
š» The Bank of Japanās rate hike coupled caused the initial sell-off in the USDJPY pair.
š» Iran-Israel conflict and Japan's stock market crash.
š» The US Fedās decision to cut interest rates caused the second wave of a market crash.
š» Risk-on assets like tech stocks and cryptos suffered a steep correction.
š» This Bitcoin price crash has pushed the pioneer crypto down to sub-$50,000 levels.
š» Investors can expect this downtrend to continue until macroeconomic outlooks are laid to rest.
Your strategies for capitalizing on the downturn:
š» A recession will likely land soon, and structural trends will influence a new cycle, notably the accelerating technology revolution in many industries and the end of decades of low interest rates.
š» Preparing now enables companies to gain market share and accelerate: Winners pulled away from losers during the last recession and widened the profit and market-cap gap during the subsequent expansion, Bainās analysis of nearly 3,900 companies worldwide shows.
š» The winners excelled in four areas: early cost restructuring, financial discipline, aggressive commercial plays and proactive M&A.
š» A four-point recession-readiness plan based on a companyās strategic and financial strength can help leadership teams prepare now.
Tips for staying strong and resilient during market fluctuations:
š» These are the swings that are happening in the market. This is how the market removes those who accidentally got into it. For those who have been in crypto for a long time, there is now a āsaleā and a good opportunity to purchase assets. And if you have already purchased, then just wait, donāt panic and donāt run to sell now.
The main thing is not to panic, and if you are saving for the long term just wait !
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