U.Today – Bitcoin Sees Impact from JPY and Stock Market Turmoil

As USD/JPY plunges by 10% in less than a month and Japan’s stocks experience significant losses, Bitcoin (BTC) also feels the strain. Veteran cryptocurrency entrepreneur Arthur Hayes mentions potential “buy” opportunities in this tumultuous environment.

JPY Up, BTC Down: Arthur Hayes Comments on “Widow Maker” Effect

Global market dynamics have shifted, affecting various regions, with Bitcoin (BTC) not immune to these changes. The recent volatility and the collapse of the USD/JPY pair have led to what Hayes labels as a “widow maker” move.

Hayes, founder of the prominent crypto exchange BitMEX and CIO of Maelstrom Fund, shared his insights with his 526,000 followers on X, suggesting that despite the recession, this is a prime time to “go shopping” in the market.

Since hitting a local bottom on July 11 around 161 JPY per USD, the Japanese currency has gained over 10%, stabilizing at 140 JPY per USD. Meanwhile, Bitcoin has struggled; after facing two rejections at $70,000 on July 29, it fell below $61,000, losing 14% within just three days.

Japan’s Nikkei 225 Sees Biggest Plunge Since 1987 Black Monday

Aside from the U.S. unemployment rate rising to 4.3% (a 0.2% increase in 30 days) and expectations of potential Fed rate cuts in September, a drastic drop on the Tokyo Stock Exchange has exacerbated volatility in global markets this week.

The Nikkei Stock Average 225, an index representing the largest Japanese companies, plummeted by 2,216.63 points, or 5.81%, in just one day. In even worse news, the broader Topix index dropped by 6.14%, marking its lowest closing numbers in six months. This decline represents the second-largest drop in the history of these indexes, a level of pressure not seen since Black Monday in 1987.

This article was originally published on U.Today