Well these have been a few bad days for crypto, Bitcoin went below $50,000.00 and the market cap went below 2 Trillion USD. This week we have seen a recovery and things do look slightly better. But this crisis hit every financial system in the world, all indexes were in bright red and there was panic all over the planet. I think one of the big reasons were the moves made by the Japanese central bank.
It seems many investors, brokers, and other people take out loans from Japanese banks because the interest rates have been permanently low. But the Japanese banking authorities decided to strengthen the Yen against the dollar and increased interest rates. I think this is when panic hit and everybody started behaving erratically.
Once the Japanese lessened the impact of their measures things started looking up. I know this is not all there was to it, but it was a starting point. What I don't know is why crises in financial markets affect crypto so much, I would think panic in financial markets would rather have more people investing in crypto as an alternative. But no, what went up was gold and silver.
We are now close to ending the week, let's see what the weekend brings us.