Fed's Failure to Match BOJ Rate Hike Blamed for Crypto Crash
CryptoNewsTerminal Staff05 Aug, 2024
Fed's Failure to Match BOJ Rate Hike Blamed for Crypto Crash
Analyst Alex Krüger attributes the recent cryptocurrency market crash to the Federal Reserve's (Fed) inaction on interest rate cuts amidst the Bank of Japan's (BOJ) rate hike. Krüger argues that the sell-off began immediately after the Fed's meeting and the Nikkei opening. He emphasizes that the crisis is not driven by the US economy or recession concerns. Instead, the Fed's mistake lies in not cutting rates at all, rather than not cutting fast enough. Krüger suggests that a financial crisis driven by Japanese speculative capital is preferable to one driven by a US recession. He intends to monitor economic indicators like jobless claims and non-farm payrolls for further insights.
