Categories: Market Watch

Bitcoin Jumps as Japan Stock Market Rallies 10% After Historic Record Sell-Off

After a massive stock market and crypto market selloff on Monday, August 5, the broader crypto market has recovered to a good extent with the Bitcoin price recovering 10% from its Monday bottom and surging past $55,400 as of press time. The altcoins have staged an even stronger recovery with more than 5-10% gains.

After crashing more than 13% yesterday, Japan’s Nikkei 225 Index has recovered more than 11% in today’s trading session. This was due to a strong recovery in the US futures market after key macroeconomic data, offering hope amid the market gloom.

Japanese equity market bounced back strongly on Tuesday, with the top two indices – Nikkei and Topix – gaining 12% each today. The bounce back in the US futures market prevented another freefall in the Japanese market as well as the crypto market. Tomo Kinoshita, a global market strategist at Invesco Asset Management in Tokyo, said:

As Japanese equities rebound, the rest of the Asian markets are likely to rebound together today. As the magnitude of Japan’s stock price decline yesterday turned out to be much more than Europe and the US, the market participants now recognize that Japan’s market correction yesterday was excessive.”

The surge in the Japanese Yen caused an unwinding of the Japanese carry trade, creating a major mayhem in global equities over the last three trading sessions. This coupled with the fears of things quickly spiraling into a US recession.

Crypto market investors took this opportunity with many buying the dips as predicted by banking giant JPMorgan. Bitcoin is up 3% covering above its crucial support levels of $54,000. From yesterday’s lows of under $50,000, the BTC price has covered up by more than 10% as market veterans like Michael Saylor showed confidence in HODL Bitcoins.

Terron Gold