Crypto Experts Analyze Recent Market Turmoil: Bitcoin Plunge, VIX Spike, and What’s Next

Following a sharp drop in Bitcoin and a surge in the VIX, crypto and macro experts on Benzinga’s ‘Bits and Bips’ podcast analyzed the causes and potential implications for both digital assets and traditional markets. The panel highlighted factors such as the Bank of Japan’s surprise rate hike, weak economic data, and thin weekend crypto markets. They also debated the impact of Jump Trading’s Ethereum sales. The experts suggested keeping an eye on economic data and global liquidity trends, while remaining cautiously optimistic about crypto’s long-term prospects.

Bitcoin’s Price Could Be $20,000 Without ETFs: Analyst

According to Bloomberg’s Senior ETF Analyst Eric Balchunas, Bitcoin’s price might be around $20,000 without the support of exchange-traded funds (ETFs). ETFs, particularly those from BlackRock and Grayscale, have played a crucial role in stabilizing Bitcoin’s price during challenging times like the Mt. Gox bankruptcy and Germany’s Bitcoin sale.

Bitcoin Traders Remain Confident Despite Price Fluctuations

Despite Bitcoin’s recent struggles around the $60,000 mark, many cryptocurrency traders remain confident that this is merely a temporary dip on the path to much higher valuations. Experts suggest a long-term perspective, emphasizing consistent accumulation and ignoring short-term volatility. Data indicates that large holders are actively accumulating Bitcoin, suggesting a strong belief in its future potential.

BOJ Deputy Governor Hints at Pause in Rate Hikes Amid Market Volatility

The Bank of Japan’s Deputy Governor, Shinichi Uchida, has suggested that the central bank may not raise interest rates anytime soon due to recent market instability. His dovish comments come in contrast to Governor Kazuo Ueda’s hawkish statements last week, when the BOJ unexpectedly raised interest rates. Uchida stated that the BOJ’s rate hike path could be affected by the current market volatility, which could impact the central bank’s economic and price projections. The recent strengthening of the yen, which reduces upward pressure on import prices and overall inflation, is also a factor influencing the BOJ’s policy decision-making. The BOJ’s actions have caused significant market swings, with the dollar surging and the Nikkei average climbing after Uchida’s remarks. Experts believe that the BOJ may be hesitant to raise rates further until market sentiment improves, and that the timing of future rate hikes will depend on the U.S. economic outlook.

Billionaire Wealth Shrinks Amidst Global Market Volatility

A global market downturn, fueled by weak US unemployment data, has resulted in a significant decline in the wealth of prominent billionaires, including Jeff Bezos, Elon Musk, and India’s Mukesh Ambani and Gautam Adani. The losses are attributed to a drop in share prices, particularly in Amazon, which saw a substantial decline due to continued investment in artificial intelligence. This financial upheaval reflects broader investor concerns about high-profit expectations from AI and market concentration.

Clean Energy Investments: A Hedge Against Market Volatility

A new study by researchers at Pusan National University reveals that investments in clean energy can act as a stabilizing force during fluctuating market conditions. By analyzing the interactions between clean energy indices and major international stock markets, the study demonstrates how clean energy assets can provide resilience and mitigate risks during economic turbulence.

Supreme Court Faces Plea for Inquiry into Stock Market Crash

Amidst the recent volatility in the Indian stock market, a plea has been filed before the Supreme Court demanding an inquiry into the significant crash observed on June 4. The petition seeks accountability from the government and regulatory bodies, highlighting concerns about the impact on investors and the adequacy of regulatory mechanisms. The plea draws attention to the sharp market downturn following the announcement of the Lok Sabha election results, raising questions about the regulatory oversight of the market.

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