Nick Timiraos, often referred to as the "Fed’s mouthpiece” and a reporter for the Wall Street Journal, revealed, "Goldman Sachs says there are good reasons to think the rising unemployment rate in the weak-across-the-board July payroll report is less fearsome than normal…But raises its recession-probability-tracking odds to 25% from 15%.” Goldman Sachs also adjusted its expectations for the Federal Reserve’s policy response, anticipating rate cuts at each upcoming meeting, with a possibility of a more aggressive 50 basis point cut if the August employment report mirrors July’s weakness.#2 Yen Carry Trade Unwind Further exacerbating the market’s fall was a significant movement in the forex markets, particularly with the Japanese yen.
Related Reading: Trump Floats Bitcoin Payments As Solution To $35 Trillion US Debt Crisis Adam Khoo noted, “The sharp rise in the JPY/USD is causing a massive unwind of yen carry trade positions and contributing to the sharp decline in US stocks.” The reversal of these trades has probably not only impacted the forex and stock markets but also had a cascading effect on Bitcoin and crypto as assets are liquidated to cover losses and repay yen-denominated liabilities.
On to the next one,” Alfred stated.#4 Liquidation Cascade Exacerbates Bitcoin Price Crash The market witnessed a dramatic increase in liquidations, with CoinGlass reporting that 277,937 traders were liquidated in the last 24 hours, leading to total crypto liquidations of approximately $1.06 billion.
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