Global financial markets witnessed tremendous volatility over the weekend, with over $1 billion in holdings in cryptocurrency futures liquidated as concerns about a recession grew. There were massive sell-offs in the stock and cryptocurrency markets as a result of the abrupt interest rate hike by the Bank of Japan, which intensified the market’s decline. For a brief period, Bitcoin fell below $50,000, while Ethereum also saw significant losses.
Amid this mayhem, rumours were circulating that Justin Sun, the founder of Tron, was being liquidated, something he adamantly denied. Sun promised to create a $1 billion fund to promote the cryptocurrency business and counteract bad sentiment, denouncing the rise of fear, uncertainty, and doubt (FUD) in the community. Sun’s portfolio did suffer despite the volatility, especially because of a notable decline in the value of Ethereum, which affected his holdings that he had bought at a premium.
The whole financial scene is similarly turbulent, with South Korea’s stock market falling 4% and Japan’s Nikkei and TOPIX indexes seeing their biggest drops since 1987. The NASDAQ and S&P 500 are beginning to exhibit correctionary signals, and the volatility of the world markets suggests that a recession may be on the horizon. The current market volatility has investors and analysts on edge due to Warren Buffett’s recent sell-offs and the Federal Reserve’s ambiguous stance on interest rates.
