Key Reasons Behind the Bloodbath on Satoshi Street

[TomPluz]

The recent bloodbath on Satoshi Street has affected all crypto assets, with Bitcoin dropping nearly 20% from its $70,000 high and many altcoins falling by 50% or more. This sharp decline is due to several factors converging to create a perfect storm of market troubles.

Geopolitical tensions are having a significant impact on the market, with rising conflicts affecting investor confidence. As these issues escalate, they create additional challenges for the cryptocurrency market, further destabilizing it.

Fears of a recession are another crucial factor. Economic indicators suggest a potential downturn, leading investors to become more cautious and sell off various assets, including cryptocurrencies. The Sahm Rule Recession Indicator has surpassed the 0.50 threshold, historically indicating the beginning of a recession in the U.S. economy.

The bearish trend in Bitcoin suggests further price drops, with altcoins likely to experience even greater volatility. Market instability was increased by large-scale sell-offs, stock market declines, and new investor losses.

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With some already firing the warning that Bitcoin may fall below the $40K mark, there is no denying now that bloodbath has come to the industry and though this is a little surprising to me we have to understand that we are in the month of August which is not so good time for cryptocurrency to shine. The confluence of different important factors along with the perceived fear in the market drove the price of Bitcoin and even Ethereum to where they are now.

Can you feel the fear or you think this is just a very temporary thing...and days from now we will already be smiling all the way to the bank, so to speak?

[hugeblack]

This panic you are talking about is the best investment opportunity which may mean that we may not see the $50k levels again or at least in the near future. The correction has already happened and the price may improve before the end of this month or next but in the long run it is an excellent opportunity to enter into a long term investment.

[Z-tight]

Can you feel the fear or you think this is just a very temporary thing..

Fear? Only weak hands or people who are storing new altcoins get afraid when the price drops like this, it has now become a normal thing for people who understand BTC enough to know that this is temporary. I will rather buy more in this dip, than to be afraid and sell.

[target]

If the chart says the price will go down to 40k, I woukd take it seriously as well to accumukate more Satoshis. It could rise rapidly the next week or the next day but because the economist are saying recession is here, the panic begins. Crazy how easy thry can spread the fear and people jist dump as well.

So the crypto market is now called Satoshi Street. Thats cool to know.

[Lucius]

We can look for reasons in anything, but the fact is that the price of BTC only reacted to the sinking of practically everything that is traded, whether it is gold, silver or shares. S&P500 already lost over $2 trillion after opening, and the entire crypto market is worth (that is, it was worth) just a little more than that.

In addition, it should be borne in mind that such things happen from time to time...

Crypto-tracked futures saw over $1 billion million in liquidations in the past 24 hours amid a market sell-off, with ether futures recording $304 million in liquidations.
Over 200,000 traders were liquidated, with the largest single liquidation order worth $27 million on Huobi.

[Crwth]

When you look at the market, it shows a lot of red, but what I see is an opportunity to buy more if you can do so. I think it is when many people fear their positions and maybe just panic selling. In the long run, it will still recover and have a good recovery in the coming months.

[electronicash]

they were saying the reason was that investors are selling off to pay back interest in borrowing yen since the country suddenly increased its interest rate. those borrowers now have to pay higher interest, selling assets nvidia, AMD or BTC makes sense so they can avoid huge debts.

and FED also didn't cut rates which i guess is another reason. this bloodbath affects crypto market and panic happens and everybody seems to be selling. stop the loss so selling makes sense as fear spreads.

[philipma1957]

Feds got what they wanted a market crash. I grabbed some. Around 0.05 btc in the 49-52 range

[yhiaali3]

I liked this expression "Bloodbath on Satoshi Street"!!! Yes, we have seen a bloodbath in the market, so to speak, which has led to a significant drop in Bitcoin and Altcoin, some of which have reached 50%.

I hold some Altcoin and was surprised that it dropped significantly and unexpectedly, but I did not get scared and did not sell at a loss, because this is something that happens all the time in the market and those with weak hands are the ones who always lose.

As for me, I am not worried about this drop and I expect a rise soon, and I always say that buying opportunities are renewed with every drop.

[Lucius]

Feds got what they wanted a market crash. I grabbed some. Around 0.05 btc in the 49-52 range

They say the whole thing started in Japan when their Nikkei 225 stock index lost a whopping 4451 points, the biggest drop in history - even bigger than Black Monday 1987 when it lost just 3836 points. In addition, Japan raised interest rates to better cope with inflation, and this caused investors to no longer be able to cheaply borrow yen and sell it and invest outside of Japan.

Of course, all other markets felt this disturbance, and cryptocurrencies, as part of that market, have to pay the price. For most, such events are only a source of panic and fear, for some others nothing more than a good business opportunity.

[Zed0X]

~
Can you feel the fear or you think this is just a very temporary thing...and days from now we will already be smiling all the way to the bank, so to speak?

I think the crypto market will continue to absorb the dumps and recover. I still remember the time when the news of China ban and how the price dropped significantly but a few months later, new ATH. Now it's speculated that it's Japan, next will be another country.

[MrSpasybo]

With some already firing the warning that Bitcoin may fall below the $40K mark, there is no denying now that bloodbath has come to the industry and though this is a little surprising to me we have to understand that we are in the month of August which is not so good time for cryptocurrency to shine. The confluence of different important factors along with the perceived fear in the market drove the price of Bitcoin and even Ethereum to where they are now.

Can you feel the fear or you think this is just a very temporary thing...and days from now we will already be smiling all the way to the bank, so to speak?

Perhaps the crypto market is also negatively impacted by the fear of economic crisis, especially since the crypto market operates 24/7, so many tokens were sold off by investors during the two weekend days when the stock market was closed. This caused the prices of many tokens to drop sharply, even creating all-time lows.

However, the BTC price is still above $50K and is very high compared to $16K in the crypto winter. I don't think investors need to panic because we've had a very good recovery of BTC and the bullrun has been secured. This is also a good opportunity for optimistic investors to continue DCA to buy more tokens at lower prices than before.

[Stompix]

They say the whole thing started in Japan when their Nikkei 225 stock index lost a whopping 4451 points, the biggest drop in history - even bigger than Black Monday 1987 when it lost just 3836 points. In addition, Japan raised interest rates to better cope with inflation, and this caused investors to no longer be able to cheaply borrow yen and sell it and invest outside of Japan.

Japan doesn't have an inflation problem it has a deflation one, they tried for 10 years to bring inflation up to at least 2% and never managed truly to do so, their interest rates were 0 and 0.1%, the yen was sliding they simply had to do rise the rate at a time where every single major economy had them up by at least 2% compared to them.

They even said that there is no certainty they have escaped deflation or that rates will be increased, they have the opposite problems we experience.

Perhaps the crypto market is also negatively impacted by the fear of economic crisis, especially since the crypto market operates 24/7, so many tokens were sold off by investors during the two weekend days when the stock market was closed. This caused the prices of many tokens to drop sharply, even creating all-time lows.

It's not perhaps, it's a certainty.
You won't have money flowing into crypto in a recession or when people face hardships, the crypto market just like the stock market needs money, when there is no money to prop it up will be a bloodbath just like everywhere else, and nobody will give a damn about what behind the technology when that doesn't bring back $.

[Z-tight]

There is a lot going on around the world right now, in terms of inflation, deflation, socio-economic problems, etc, and surely it has to affect the price of crypto, as it has done now, before and will happen in the future.

I don't know how long crypto will be down this time around, but these issues will slow down the movement of BTC to ~ $100,000 that a lot of people are expecting, i believe that price is achievable at the peak of this cycle, but the movement will be anything but smooth.

[Lucius]

They say the whole thing started in Japan when their Nikkei 225 stock index lost a whopping 4451 points, the biggest drop in history - even bigger than Black Monday 1987 when it lost just 3836 points. In addition, Japan raised interest rates to better cope with inflation, and this caused investors to no longer be able to cheaply borrow yen and sell it and invest outside of Japan.

Japan doesn't have an inflation problem it has a deflation one, they tried for 10 years to bring inflation up to at least 2% and never managed truly to do so, their interest rates were 0 and 0.1%, the yen was sliding they simply had to do rise the rate at a time where every single major economy had them up by at least 2% compared to them.

They even said that there is no certainty they have escaped deflation or that rates will be increased, they have the opposite problems we experience.
~snip~

I've always wondered how a disciplined and hardworking nation could have such bad economic results, but apparently their politicians are very bad, or maybe under the influence of some external influences that govern them. Japan is said to be the first country in the world in terms of its debt, if the total debt is taken into account - and as far as I can see, they are in the infamous 6th place in terms of external debt.

In any case, it is strange what is happening there, and I am really interested in who profited the most from what happened there and spread to the whole world.