The post “Black Swan” Author Explains Japanese Market Collapse That Caused Crypto Market Crash appeared first on Coinpedia Fintech News

Nassim Nicholas Taleb, the author of books on uncertainty like “Black Swan”, “Antifragile” and others, has explained how exactly the Japanese market collapse developed which caused Bitcoin to crash during the past week. 

The Japanese Nikkei 225 stock index experienced a drastic drop after the Japanese central bank conducted an interest rate hike. Taleb remarked that the BOJ (Bank of Japan) had kept zero interest rates fro nearly 33 years and for and for 23 years until now it had injected quantitative easing measures into its economy. He stated that all of these measures come at a price you eventually must pay.

He also noted that “Japan was always mentioned by the QE fools as a place where the strategy worked.” Unlike Japan, the US has been frequently combining tightening and losing strategies regarding the interest rate, but still it has been facing big inflation over the past few years. 

Experts Criticize BoJ’s Rate Moves

While BOJ is considering further interest rate increases, experts around the world are criticizing Japanese central bank for it as an untimely move. Mari Iwashita, chief market economist at Daiwa Securities Co, believes that before making its next move, Japan needs to see which direction the U.S. economy will go, whether it will enter a recession or make a soft landing.

Following the Japanese stock market plunge, the turmoil was caught by the US markets and Bitcoin, while the rest of the crypto followed suit. After major US stock indexes plummeted, bitcoin lost 18% in a couple of days, falling from $61,000 to $49,750. Bitcoin is currently trading at $55,210. Ether also fell 22% to $2,100, recording its biggest one-day fall since 2021. 

Crypto Stocks Slid!

Crypto-related company stocks also slid with digital asset prices. Coinbase (COIN) dropped more than 9% in U.S. pre-market trading, while MicroStrategy (MSTR) lost 13%.

El Salvador president nayib bukele

nayib bukele

Nayib Armando Bukele is a great leader, a true believer, and passionate about cryptocurrency and blockchain technology. Being the 43rd leader of El Salvador, his government rolled out a digital crypto wallet as an application, called Chivo which appeared reloaded with $30 of Bitcoin to promote adoption. Additionally, he is referred to as a moot president of the planet. In November 2021, Bukele announced a $1 billion bitcoin bond to develop a new, tax-free city, at the time bitcoin was near twice its current value of about $36,000 a pop.
 
Nayib Armando was born on 24th July 1981 in the Salvadoran capital. He’s a son of Olga Ortez American state bukele and Armando Bukele. He graduated from Central American University and gained knowledge of the law. He was just 18 years when he founded his first company. On five June 2021, he proclaimed that he planned to introduce a bill to the lawmakers which might create El Salvador the primary nation to create bitcoin a tender. The assembly approved the bill on eight June 2021 and was regular to return to result on seven Sept 2021. On seventeen June 2021, the planet bank rejected a letter of invitation from him to help with the implementation of bitcoin as tender, citing considerations over transparency and therefore the environmental effects of bitcoin mining. The president is presently arranging an untaxed “Bitcoin city”.
 
On 11 March 2012, he was an electoral politician of Nuevo Cuscatlan, within the department of Los Angeles Libertad. Within the municipal election of 2015 he won the berth of the Salvadoran capital, that is, the capital town of El Salvador, representing a coalition of the FLMN and therefore the Salvadoran political party. alternative political achievements area unit Expulsion from the FMLN, election as president, and presidency; Bukele assumed workplace on one June 2019, succeeding Glen Gebhard Ceren, he proclaimed a cupboard of sixteen individuals created of eight men and eight ladies, who can serve till one June 2024.
nayib@presidencia.gob.sv

President

Bitcoin advisor, Max Keiser, also commented on the recent situation in the financial markets, mostly referring to the U.S. He stated that the damage has been minor and that if he were in the Fed’s shoes he would leave the interest rates unchanged to “let another 40% or more of air out of these markets.” 

Kiyosaki’s Advise To Investors

Recently, Robert Kiyosaki had declared amidst the stock market crash that losses are substantial, and stressed that the crash represents a lucrative opportunity for investors to buy assets at lower prices. However, he advised people to consider this downturn as a chance to get richer, predicting significant future gains in gold, silver, and bitcoin.

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