Course in the markets: What the Black Monday means for crypto investors

Course in the markets: What the Black Monday means for crypto investors

The latest developments on the financial markets have global effects and raise questions about the future of cryptocurrencies. On Monday, the Japanese Nikkei index experienced the largest decline since 1987 with a loss of 12.4 percent. Against the background, this happened against the background of increasing global fears of recession and weak labor market data from the United States. Such sudden market movements, which are often referred to as "Black Monday", not only affected the stock market, but also put pressure on the crypto markets.

entry indicators of the crypto world

The Bitcoin course fell by 17 percent, while Ethereum had to deal with a decrease of 23 percent. Despite these dramatic figures, experts advocate that the causes of the course of the course are not solely due to the crypto market itself. Robert Schwertner, better known as the "Cryptorobby", explains that during the last cryptocrash in November 2022, the unveiling of a large-scale fraud at the FTX crypto exchange led to panic sales. This current crisis, on the other hand, is more influenced by external factors such as geopolitical tensions and economic instability.

A look at specific market movements

In addition to the general market conditions, there are specific developments that also burden the crypto market. Florian Wimmer, founder of Blockpit, emphasizes that the Mt. GOX-Bitcoin fill and sales by Jump Capital have significant effects on the market mood. Mt. Gox, the former largest crypto exchange, castle in 2014 and is now only now paying Bitcoin to creditors. These developments could further increase the range of Bitcoin and lead to additional pressure on prices.

market psychology and buying behavior

Despite the decline, there is an optimistic view of the possibilities of the market among the leading experts. Klanschek from Bitpanda emphasizes that in times of emotional market movements, such as currently, the volatility of the cryptos is taken up together with tech shares. This follows the logic that investors first sell the most risky assets in uncertain times.

Schwertner is also optimistic and advises investors to use current prices as opportunities for sale. He emphasizes that Bitcoin has still increased by 80 percent compared to the previous year, which positions him as a "safe port". These resilient properties of cryptocurrency could help investors better deal with future price fluctuations.

an outlook in the future

The future development of cryptocurrencies depends on several factors. However, Wimmer warns of the effects of a negative US policy. The outcome of the upcoming presidential election could have a decisive weight. While Donald Trump shows a pro-bitcoin posture, the victory of Kamala Harris could throw the market back in the long term. This is an important aspect that investors should keep in mind.

In addition, Schwertner warns of an impending bursting of the AI ​​bubble, which could also lead to another decay of the crypto-assets. The reporting from large financial companies such as Blackrock shows that even more traditional markets can influence the crypto world and endanger their stability.