Sign in Subscribe

Market Update: Historic Bloodbath In The Markets

❗This is the second update for this historical day of market movements.

Market Update: Historic Bloodbath In The Markets

🧐 My Take

  • Today is a 'risk-off' event. This means all assets are moving in the same direction, causing price correlations to reach 1.0 across the board.
  • Bitcoin is going to be OK.
  • An event like today is historic but temporary. There can be more pain. I am waiting for the US markets to open in a few hours.
  • The next phase involves navigating the recovery and rebuilding process in the coming weeks.
  • It's impossible to predict the bottom. The Bitcoin temperature at 2.8 is still only Neutral and not in the Fear zone. It's OK to be patient and not FOMO. The best strategy is to dollar-cost-average (DCA).

🚦Market Signals

🥊 Bitcoin vs Other Assets

Gold is the only asset that is up this month.
Interest in Bitcoin is up.

US Dollar Index

US dollar is going down.

CME FedWatch

Within just a few hours, market expectations reach 100% of interest rate cuts. This is bullish for price recovery.

🗞️ Market Movers

  • Global stock markets plunge as Japan suffers worst sell-off in its history, read more here.
  • Economists are raising alarms about the US economy; read more here.
  • Current situation:
    1. Japan's stock market posts its biggest 2-day drop in history
    2. Magnificent 7 stocks erase over $1 trillion in market cap today
    3. Crypto markets erase over $500 billion in market cap in 24 hours
    4. Markets price in a 60% chance of an emergency Fed rate cut
    5. South Korea halts all sell orders on their stock market
    6. Nasdaq futures fall as much as 6.5% in one day
  • Pre-market trading in US tech stocks:
    1. Nvidia, $NVDA, -8%
    2. Tesla, $TSLA: -6%
    3. Apple, $AAPL: -6%
    4. Alphabet, $GOOGL: -5%
    5. Meta, $META: -5%
    6. Microsoft, $MSFT: -5%
    7. Amazon, $AMZN -4%

🕊️ Bitcoin Buzz

  • The largest assets and indices in the world are trading like meme stocks.
  • Why the BOJ has no choice and is merely prolonging the inevitable: "At a gross balance sheet value of around 500% GDP or $20 trillion, the Japanese government's balance sheet is, simply put, one giant carry trade"—Deutsche Bank.
  • The recent surge in JPY/USD led to significant unwinding of Yen carry trades, impacting US stocks.

📊 Poll

Will Bitcoin's price crash further?

Last week's result: Will Bitcoin hit $100k before the U.S. election?

60% - Yes, 40% - No

🕊️ Help Me Improve Email Deliverability

To ensure you and others receive our updates consistently, please consider these three actions:

  1. Forward This Email: Share it with anyone interested or even with yourself. But sharing it with someone else is even better!
  2. Reply to This Email: Feel free to ask questions, provide feedback, or say hello.
  3. Star or Move This Email to Your Primary Inbox: Email providers sometimes need a nudge to recognize that these emails are valued.

Please give your comments and feedback on this report. See you in the next block.
Sandeep Goenka

Comments ()