Crypto Bloodbath - Black Monday 05th August
Date: August 6, 2024
Guests: Markose Chentittha, RA George
Overview:
In this episode, we dive deep into the events surrounding the "Crypto Bloodbath" on Black Monday, where over $2.9 trillion was wiped out in just 24 hours, surpassing the losses of the 2008 financial crisis. We'll explore the impact on various markets, the geopolitical factors at play, and what this means for the future of cryptocurrency.
Key Metrics:
- Over $500 billion disappeared from the crypto market.
- Bitcoin dominance: 56% (CoinMarketCap), 58% (CoinGecko).
- Tether USDT 24-hour volume: $184 billion.
- Ethereum market is down by over $100 billion.
- DeFi Total Value Locked (TVL) is down to $79 billion from $100 billion.
- Aave records $6 million in profit from fees.
- DEX metrics remain unchanged, indicating possible conversion to fiat.
Discussion Points:
Why the Crypto Bloodbath?
- Speculation of a US recession, despite media-driven narratives vs. factual data.
- Bureau of Labor Statistics and FOMC meeting reports indicate better-than-expected labor market conditions.
- Potential for the Federal Reserve to reduce interest rates, viewed positively for Bitcoin and cryptocurrency prices.
Geopolitical Chaos:
- Benjamin Netanyahu's speech at Congress, followed by rising tensions between Iran, Israel, and Hezbollah.
- Japan's Nikkei Stock Average dives 4,451 points, surpassing the Black Monday crash of 1987.
Global Market Reactions:
- South Korea has experienced the biggest stock market crash since 2008.
- India's stock market drops by 15 lakh crore ($181.38 billion).
- UK civil unrest and dissatisfaction with the Labour Party, which is not favourable toward Bitcoin and cryptocurrency.
- Bangladesh's PM resigns and escapes to India amid political turmoil.
Corporate and Industry Impact:
- Upcoming earnings reports from Meta, Amazon, and Nvidia, with insights from Seeking Alpha and The Motley Fool.
- The long-term impact on the Bitcoin mining industry and new ATM installations.
- Justin Sun's $1 billion fund with promises of action yet to be realized.
Metrics to Watch:
- Stablecoin volume fluctuations.
- Continued geopolitical developments in the Middle East.
- Follow IDF's Twitter account and Whale Alert (@whale-alert) for updates.
- Use DefiLlama and Akhram Intelligence (@arkhamintel) for DeFi insights.
Conclusion:
Despite the chaos, traders see a potential reduction in interest rates, which could benefit cryptocurrency markets. We'll continue to monitor these developments and their implications for the crypto industry.
Jobs Report - Official Link
https://www.bls.gov/news.release/empsit.nr0.htm
FOMC Meeting - Official Link here https://www.federalreserve.gov/newsevents/pressreleases/monetary20240731a.htm