As the global stock markets suffered declines today, the crypto market bled as well with Bitcoin seeing prices below $49,000.
Binance’s CEO has just shared a post via his X account, addressing the declines in the global markets.
Macroeconomic Factors Influence
Binance’s Richard Teng said that the recent price drops in crypto and equity prices are influenced by macroeconomic factors. He wrote that this is not indicative of a long-term negative trend.
In his post on X, he mentioned potential Fed rate cuts and the high geopolitical volatility, saying that there is still significant potential for market fluctuations.
Scott Melker, also known as The Wolf of All Streets, shared a post via his own X account, saying that all correlations are going to a single one in a black swan type of event.
He said that the question then becomes “Where do you want to be when things bottom?”
Melker wrote that back in March 2020, when the world was hit by the strong debut of the covid pandemic, Bitcoin bottomed and then, the coin managed to pull a 17x to the upside while stocks doubled.
All correlations go to one in a black swan event.
The question then becomes – where do you want to be when things bottom?
In March 2020 Bitcoin bottomed and then… pulled a 17x to the upside while stocks doubled.
— The Wolf Of All Streets (@scottmelker) August 5, 2024
Federal Reserve Action Expected
According to him, the Fed will need to react really fast to avoid a meltdown that could make 2008 look like a joke.
He said that since we are in an election year, he is expecting emergency actions.
