Greed

Reserve

Bank

Bitcoin

<p>The post <a href="https://coinpedia.org/news/bitcoin-bounces-back-is-this-a-temporary-recovery-or-start-of-a-bear-market/">Crypto Market Today: Is This Just a Correction or the Start of a Bear Market?</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p><a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/" target="_blank" rel="noreferrer noopener">Bitcoin’s Price</a> recovered over 13% to $49,557 after a big slump. The Crypto Fear and Greed Index reached “Extreme Fear” for the first time in two years, and <a href="https://markets.coinpedia.org/bitcoin-etf/" target="_blank" rel="noreferrer noopener">U.S. spot Bitcoin ETFs</a> lost $168.4 million. The market sentiment indicator dropped to 17 out of 100 on August 5, its lowest since July 12. The Japan stock crash has negatively impacted Bitcoin, Ethereum, and the altcoin market.&nbsp;</p> 
<p>Crypto analyst VirtualBacon <a href="https://x.com/VirtualBacon0x/status/1820887119113679349">delves </a>into whether this marks the start of prolonged bearish trends or a temporary correction.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;"> Was the Crypto Crash just the Beginning? <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;"><br><br>Bitcoin, Ethereum, and the entire altcoin market took a hit with Japan’s latest drama. <br><br>Is this the start of more red days, or just a temporary correction? <br><br>Here’s what’s happening and what I'm doing next. <br><br>Let’s dive in <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f9f5.png" alt="🧵" class="wp-smiley" style="height: 1em; max-height: 1em;"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;"></p>— VirtualBacon
   <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f987.png" alt="🦇" class="wp-smiley" style="height: 1em; max-height: 1em;">
   <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f50a.png" alt="🔊" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@VirtualBacon0x) <a href="https://twitter.com/VirtualBacon0x/status/1820887119113679349?ref_src=twsrc%5Etfw">August 6, 2024</a>
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</figure> 
<h2 class="wp-block-heading" id="h-the-global-financial-market-halted"><strong>The Global Financial Market Halted</strong></h2> 
<p>VirtualBacon explains that the financial markets are facing a selloff due to the unwinding of the Japanese Yen carry trade against the US dollar and foreign stocks. <a href="https://coinpedia.org/news/why-did-japans-stock-market-crash-and-its-impact-on-crypto-market/" target="_blank" rel="noreferrer noopener">The Bank of Japan (BoJ) raised interest rates</a> above 0% for the first time since 2008, causing many to pull out of leveraged positions. This is happening alongside potential US Federal Reserve interest rate cuts and recession fears.</p> 
<p>The worldwide market crashed after the BoJ raised rates. Over the past year, the sinking of the Japanese Yen versus the US dollar caused inflation, forcing Japan to raise rates, raise borrowing costs, and unwind the carry trade. Korea, Taiwan, and Japan markets fell, with the Nikkei falling nearly 12%. Both the S&amp;P 500 and NASDAQ suffered but recovered.</p> 
<h2 class="wp-block-heading" id="h-potential-us-federal-reserve-actions"><strong>Potential US Federal Reserve Actions</strong></h2> 
<p>Next, the expert underlined the heated debate over whether the US Federal Reserve will cut emergency rates. Past examples are COVID-19 in March 2020 and Lehman Brothers in 2008. Immediate rate cuts may boost the market but not prevent a recession. The Fed might prefer to wait until the next FOMC meeting in September to base their decision on more comprehensive data.</p> 
<h3 class="wp-block-heading" id="h-managing-the-market-downturn"><strong>Managing the Market Downturn</strong></h3> 
<p>Experts suggest adopting a probabilistic approach during uncertain times. Avoiding leverage and employing dollar-cost averaging (DCA) in positions can mitigate risks and allow for gradual investment without the pressure of timing the market perfectly.</p> 
<p>For Bitcoin, prices could range between $50k and $55k, with significant support between $41k and $43k. Ethereum’s current price of around $2,000 presents a buying opportunity, with expectations of higher values by year-end. Solana is another strong large-cap asset, showing significant consolidation between $80 to $115.</p> 
<h3 class="wp-block-heading" id="h-advice-for-investors"><strong>Advice for Investors</strong></h3> 
<p>The expectation is that by September 17-18, asset prices should begin to recover and improve through the year-end. Monitoring key indices like the S&amp;P, NASDAQ, and the VIX (volatility index) can provide insights into market trends. Despite the current downturn, there’s no point in selling now. Controlling leverage and strategically positioning investments can help navigate the next 45 days, with better times anticipated.</p> 
<p>The future of crypto assets is uncertain. Should you buy the dip or sell the top? Let’s debate.</p> 
<p>Also Check Out: <a href="https://coinpedia.org/news/bitcoin-news-today-whale-activity-sparks-bitcoin-rally-over-30k-btc-purchased-in-two-days/" target="_blank" rel="noreferrer noopener">Bitcoin News Today: Whale Activity Sparks Bitcoin Rally; Over 30k BTC Purchased in Two Days</a></p>

Crypto Market Today: Is This Just a Correction or the Start of a Bear Market?

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