U.Today – As it plummets 10% in less than a month and Japanese stocks are under fire, (BTC) is also feeling the pain. At the same time, veteran cryptocurrency entrepreneur and investor Arthur Hayes indicates possible “buying” opportunities in this area.
Yen up, BTC down: Arthur Hayes comments on the 'widowmaker' effect
The global “rick off” mode captivated various markets in different regions of the world, and Bitcoin (BTC) is no exception. This short-term “widow maker” move is most likely due to increased volatility and a breakdown in the USD/JPY pair.
Such statements were shared by Arthur Hayes, the founder of major cryptocurrency exchange BitMEX and CIO of Maelstrom Fund, with his 526,000 followers on X.
However, Hayes sees the recession as another window of opportunity: he says the time has come to “go shopping”.
Since hitting a local bottom of around 161 JPY per USD on July 11, the Japanese currency has managed to gain more than 10% and stabilize at 140 JPY per USD.
In contrast, Bitcoin (BTC), the largest cryptocurrency, after being rejected twice at $70,000 on July 29, fell below $61,000, losing 14% in just three days.
The 225 index registers its biggest drop since Black Monday in 1987
In addition to the US unemployment rate soaring to 4.3% (up 0.2% in 30 days) and anticipation of possible Federal Reserve rate cuts in September, a painful collapse on the Tokyo Stock Exchange contributed to volatility in global markets this week.
The Nikkei Stock Average 225, an index of shares of Japan's largest companies, lost 2,216.63 points, or 5.81 percent, in just one day.
The broader index fared even worse, falling 6.14% to its lowest closing level in half a year.
Economists said the two declines were the second-largest in the history of the relevant indices. Japanese stocks had not experienced such pressure since Black Monday in 1987.
This article was originally published on U.Today
