Market downturn

Analyst: The main driving factor behind this round of market decline is not the U.S. economic recession, but rather the missed opportunity for interest rate cuts

ChainCatcher message, cryptocurrency analyst Alex Krüger posted on social media: "The current market crash is clearly driven by macro factors, rather than being specific to the cryptocurrency industry. Moreover, it is becoming increasingly clear that the main driving factor is not the collapse of the U.S. economy (discussions about a U.S. recession heated up after last Friday's employment data).It seems that the policy mistake was not the Federal Reserve's failure to cut rates quickly enough, but rather the Fed's decision not to cut rates when Japan raised its rates. This statement does seem a bit 'hindsight', and we now need U.S. economic data to confirm this.The chart shows the starting point of last week's sell-off, which was right after the FOMC statement last Wednesday. It coincided with the opening time of the Nikkei index.A financial crisis primarily triggered by a large number of Japanese leveraged speculators is much better than one caused by a recession in the U.S.As for U.S. data, the current focus is on the labor market, so special attention should be paid to this Thursday's initial jobless claims (which are usually not market-moving data), as well as the state employment data to be released on August 16 (State Employment data, which provides detailed state-level employment data and is rarely focused on by the market)."
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