Dollar

Reserve

America

<h4>The Nikkei in Japan added 11% overnight making up most of the losses from Monday. And the S&amp;P started down 4% and ended down 3% on Monday. On Tuesday, the S&amp;P opens at 5203, up 0.33%.</h4> 
We are looking at the crazy crypto markets over the last few days to try to figure out what is going on and what information we can take going forward. 
<h5>US Treasury BuyBack Program</h5> 
First, leading into the American trading day, this is how the Nikkei in Japan did. They made up most of the previous day’s losses. 
<blockquote class="twitter-tweet"> 
 The Nikkei has recovered all of its historic losses from yesterday and added more now net up on the week <a href="https://t.co/YuMYjWSGL2">pic.twitter.com/YuMYjWSGL2</a> 
 — TheUndefinedMystic (@pennycheck) <a href="https://twitter.com/pennycheck/status/1820623730113904826?ref_src=twsrc%5Etfw">August 6, 2024</a>
</blockquote> 
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And what are the American markets telling us?&nbsp; 
Well the first thing American markets are telling us is that the US Treasury and the Federal Reserve are going to act. We tweeted a few hours ago from our main Altcoin Buzz X account (<a href="https://x.com/Altcoinbuzzio" target="_blank" rel="noopener">@altcoinbuzzio</a>) and we’ve seen from <a href="https://x.com/kyle_chasse/status/1820677789529366617" target="_blank" rel="noopener">others</a> that the US Treasury announced a $30 billion per month buyback program. 
<blockquote class="twitter-tweet"> 
 The US treasury is starting a massive buyback from. tomorrow. 
 This could be the jump start that the market needed. <a href="https://t.co/gudDwG6dZc">pic.twitter.com/gudDwG6dZc</a> 
 — Altcoin Buzz (@Altcoinbuzzio) <a href="https://twitter.com/Altcoinbuzzio/status/1820702066895159787?ref_src=twsrc%5Etfw">August 6, 2024</a>
</blockquote> 
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So what does that mean? 
First, this amount is double what the original buyback plan was going to be starting in September. So this plan was going into action even before the actions of last week. But the difference is the size. Now instead of the previously announced $15 billion, it will be $30 billion. That IS an effect of the events of the last week. 
<blockquote class="twitter-tweet"> 
 <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f1fa-1f1f2.png" alt="🇺🇲" class="wp-smiley" style="height: 1em; max-height: 1em;"> US Treasury will double the amount of buyback starting in Sept! 30 Billion USD instead of 15B! This was pre planned and have nothing to do with yesterday. 
 Steady lads! Deploying liquidity! <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f601.png" alt="😁" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f91d.png" alt="🤝" class="wp-smiley" style="height: 1em; max-height: 1em;"> as mentioned since last year money printer will go hot. 
 Everybody is talking… <a href="https://t.co/LhNbYMZ5Su">https://t.co/LhNbYMZ5Su</a> <a href="https://t.co/5qZkj4kqOj">pic.twitter.com/5qZkj4kqOj</a> 
 — Seth (@seth_fin) <a href="https://twitter.com/seth_fin/status/1820753402101469657?ref_src=twsrc%5Etfw">August 6, 2024</a>
</blockquote> 
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As you can see in our tweet above from our AB account, the main goal of the buyback program is liquidity support. This means making sure there is enough liquidity in the market for US T bond purchases and sales. 
US interest rates have been at a historically high level compared to the near zero interest rate environment we’ve had for the last 10-15 years. What the buyback does is give liquidity to the market by buying back older higher higher-yielding bonds and issuing more lower-yielding bonds as interest rates decline. This means 2 things 
<ol> 
 <li style="font-weight: 400;" aria-level="1">The total interest payments the US Government has to make will go down</li> 
 <li style="font-weight: 400;" aria-level="1">The US can issue more debt for the same interest payments they have been making</li> 
</ol> 
So the buyback program will bring interest rates down. It will also add liquidity to the market. And it will boost investor confidence both that US Treasuries are still a good investment and that the US is managing its debt. 
<h5>The US Dollar</h5> 
Like it or not, the US Dollar is still the reserve currency and the primary unit of account worldwide. It’s one of the things that has made stablecoins such a huge success. They are one of the few crypto products with real, true product market fit. And if you are not sure about that, ask someone who lives or has family living in Africa, South Asia, or Latin America and you will see for yourself. 
Other than the <a href="https://www.altcoinbuzz.io/cryptocurrency-news/will-the-crypto-bloodbath-from-this-weekend-continue/" target="_blank" rel="noopener">Japanese Yen</a> as part of unwinding their carry trade in US Dollars, the USD is up against nearly every major currency in the world and all emerging market currencies like Mexican Pesos or Argentina Pesos. 
The strength of the USD, which is continuing through all this global and crypto markets mess, means other currencies need more of their home currency to buy dollars. That takes liquidity out of the global system, too. China is affected a lot by this action and its central bank <a href="https://x.com/DistilledCrypto/status/1820776935019917763" target="_blank" rel="noopener">the PBOC</a> is expected to add liquidity to the global markets as well. 
Some countries are starting to dump dollars now including Russia and China but we haven’t seen how that will affect the market yet. 
The important economy, both globally and for crypto markets, of India just saw the rupee hit a record low against the USD. So there is lots of conflicting news out there. But there is less liquidity for stocks, bonds, real estate, gold, or crypto if you have to use more rupees or pesos to buy dollars to get them. 
<img decoding="async" class="alignnone size-full wp-image-147559" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Capture-147-inr-to-usd-Google-Search-www.google.com_.jpg" alt="" width="707" height="316" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Capture-147-inr-to-usd-Google-Search-www.google.com_.jpg 707w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Capture-147-inr-to-usd-Google-Search-www.google.com_-300x134.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Capture-147-inr-to-usd-Google-Search-www.google.com_-696x311.jpg 696w" sizes="(max-width: 707px) 100vw, 707px"> 
<h5>Recession Fears</h5> 
The other big fear in the macro environment and crypto markets is recession. Much of the EU has been in recession since last fall. There are conflicting pieces of data as to whether that’s done or not. It’s harder to measure now with August being the huge tourism month for all of Europe, especially along the Mediterranean. 
There are fears in the US as well. Recent company layoff announcements have come from: 
<ul> 
 <li style="font-weight: 400;" aria-level="1">Dell</li> 
 <li style="font-weight: 400;" aria-level="1">Intel</li> 
 <li style="font-weight: 400;" aria-level="1">Google</li> 
 <li style="font-weight: 400;" aria-level="1">Microsoft</li> 
</ul> 
<blockquote class="twitter-tweet"> 
 As mass tech layoffs continue to sweep the industry, Google is the latest company to cut and relocate employees.<a href="https://t.co/p7bZOISvGw">https://t.co/p7bZOISvGw</a> 
 — Entrepreneur (@Entrepreneur) <a href="https://twitter.com/Entrepreneur/status/1820278652061290735?ref_src=twsrc%5Etfw">August 5, 2024</a>
</blockquote> 
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And this goes with <a href="https://techcrunch.com/2024/08/01/tech-layoffs-2024-list/" target="_blank" rel="noopener">the long list</a> including Tesla, TikTok, and others that laid off tech workers earlier this year. It’s problematic for 2 big reasons. First, tech jobs are great high-paying jobs. Second, the commercialization of tech is where the US leads the world. So if the US is struggling here, then that’s a big issue. 
Some believe the US is in a recession already in terms of declining GDP. The true definition of a recession is 2 successive quarters of declining GDP. But still, a GDP going down is bad. It hurts. 
We have no proof yet but things look and feel unstable and shaky. And THAT is the big issue facing crypto markets today. 
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Disclaimer 
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours. 
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The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/us-crypto-markets-open-tuesday-august-6th/">US &amp; Crypto Markets Open Tuesday August 6th</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.

US & Crypto Markets Open Tuesday August 6th

Altcoin Buzz

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