“Black Swan” Author Explains Japanese Market Collapse That Caused BTC Crash

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Taleb Explains Japanese Market Collapse

Nassim Nicholas Taleb, the author of books on uncertainty like “Black Swan”, “Antifragile” and others, has explained how exactly the Japanese market collapse developed which caused Bitcoin to crash during the past week. 

The Japanese Nikkei 225 stock index experienced a drastic drop after the Japanese central bank conducted an interest rate hike. Taleb remarked that the BOJ (Bank of Japan) had kept zero interest rates fro nearly 33 years and for and for 23 years until now it had injected quantitative easing measures into its economy. He stated that all of these measures come at a price you eventually must pay.

He also noted that “Japan was always mentioned by the QE fools as a place where the strategy worked.” Unlike Japan, the US has been frequently combining tightening and losing strategies regarding the interest rate, but still it has been facing big inflation over the past few years. 

Experts Criticize BoJ’s Rate Moves

While BOJ is considering further interest rate increases, experts around the world are criticizing Japanese central bank for it as an untimely move. Mari Iwashita, chief market economist at Daiwa Securities Co, believes that before making its next move, Japan needs to see which direction the U.S. economy will go, whether it will enter a recession or make a soft landing.

Following the Japanese stock market plunge, the turmoil was caught by the US markets and Bitcoin, while the rest of the crypto followed suit. After major US stock indexes plummeted, bitcoin lost 18% in a couple of days, falling from $61,000 to $49,750. Bitcoin is currently trading at $55,210. Ether also fell 22% to $2,100, recording its biggest one-day fall since 2021. 

Crypto Stocks Slid!

Crypto-related company stocks also slid with digital asset prices. Coinbase (COIN) dropped more than 9% in U.S. pre-market trading, while MicroStrategy (MSTR) lost 13%.

El Salvador president, Nayib Bukele’s Bitcoin advisor, Max Keiser, also commented on the recent situation in the financial markets, mostly referring to the U.S. He stated that the damage has been minor and that if he were in the Fed’s shoes he would leave the interest rates unchanged to “let another 40% or more of air out of these markets.” 

Kiyosaki’s Advise To Investors

Recently, Robert Kiyosaki had declared amidst the stock market crash that losses are substantial, and stressed that the crash represents a lucrative opportunity for investors to buy assets at lower prices. However, he advised people to consider this downturn as a chance to get richer, predicting significant future gains in gold, silver, and bitcoin.