U.Today – As it falls 10% in less than a month and Japanese stocks come under fire, (BTC) is also feeling the pain. At the same time, seasoned cryptocurrency trader and investor Arthur Hayes points to potential “buy” opportunities in the zone.
JPY Up, BTC Down: Arthur Hayes Comments on the ‘Widow Maker’ Effect
The global “rick off” mode has bewitched various markets in different regions of the world, and Bitcoin (BTC) is no exception. It is highly likely that this short-term “widow maker” move is to be attributed to the increased volatility and breakdown of the USD/JPY pair.
Similar statements were shared by Arthur Hayes, founder of the major cryptocurrency exchange BitMEX and CIO of Maelstrom Fund, whose account on X is followed by 526,000 people.
However, he sees the recession as another opportunity: Hayes says it’s time to “go shopping.”
Since hitting a local bottom on July 11 at around 161 JPY per USD, the Japanese currency has gained more than 10% to stabilize at 140 JPY per USD.
By comparison, Bitcoin (BTC), the largest cryptocurrency, after being rejected twice on July 29 at $70,000, has fallen below $61,000, losing 14% in just three days.
225 records biggest decline since Black Monday in 1987
In addition to the U.S. unemployment rate rising sharply to 4.3% (up 0.2% in 30 days) and expectations of potential Federal Reserve rate cuts in September, the painful fall of the Tokyo stock exchange added to the volatility on global markets this week.
The Nikkei Stock Average 225, an index of Japan’s largest companies, lost 2,216.63 points, or 5.81%, in just one day.
The broader index fared even worse, falling 6.14% to its lowest closing level in six months.
Economists said both declines were the second-largest in the history of their respective indices. As a result, Japanese stocks have not experienced such pressure since Black Monday in 1987.
