Key Points
- Significant declines in crypto and equity markets shake the global economies.
- Binance’s CEO addresses the macroeconomic factors influencing them.
As the global stock markets suffered declines today, the crypto market bled as well with Bitcoin seeing prices below $49,000.
The crypto market saw over $1 billion in liquidations over the past 24 hours, with BTC recording $373 million in liquidations, according to CoinGlass data.
Binance’s CEO has just shared a post via his X account, addressing the declines in the global markets.
Macroeconomic Factors Influence
Binance’s Richard Teng said that the recent drops in crypto and equity prices are influenced by macroeconomic factors. He wrote that this is not indicative of a long-term negative trend.
In his post on X, he mentioned potential Fed rate cuts and the high geopolitical volatility, saying that there is still significant potential for market fluctuations.
Teng shared a reminder for people to always do their own research and stay informed while keeping building.
Scott Melker, also known as The Wolf of All Streets, shared a post via his own X account, saying that all correlations are going to a single one in a black swan type of event.
He said that the question then becomes “Where do you want to be when things bottom?”
Melker wrote that back in March 2020, when the world was hit by the strong debut of the covid pandemic, Bitcoin bottomed and then, the coin managed to pull a 17x to the upside while stocks doubled.
All correlations go to one in a black swan event.
The question then becomes – where do you want to be when things bottom?
In March 2020 Bitcoin bottomed and then… pulled a 17x to the upside while stocks doubled.
— The Wolf Of All Streets (@scottmelker) August 5, 2024
Federal Reserve Action Expected
CNBC Crypto Trader’s Ran Neuner said that this is the moment that we’ve all been waiting for, and this was triggered by the reversal of the Japanese carry trade.
According to him, the Fed will need to react really fast to avoid a meltdown that could make 2008 look like a joke.
He said that since we are in an election year, he is expecting emergency actions.
Traders on X believe that the current financial situation is alarming and the Fed has to react quickly in order to prevent a catastrophic meltdown.
