Recently, “Black Swan” author and risk analyst Nassim Nicholas Taleb shared his views on the Japanese collapse that led to the recent crash of Bitcoin. He pointed out that the major decline in the Japanese Nikkei 225 stock index was a result of an interest rate hike conducted by the Japanese central bank. Taleb believes that the market bloodbath was caused by the Bank of Japan’s continuous near zero interest rates and quantitative easing measures over the past 33 years. According to him, these measures come with a price that must eventually be paid.
Shibburn’s Observations
On August 6, Shibburn, a website dedicated to tracking SHIB token burns, reported a significant increase in the burn rate of SHIB tokens, reaching over 708%. However, the total number of tokens destroyed was relatively small, with only 2,760,121 tokens being burned. Most of these tokens were transferred to a dead-end wallet in a single transaction, with 2,000,000 SHIB being moved. Despite the recent plunge in SHIB’s price, the meme coin managed to recover and increase by 25.88% to $0.00001393. Unfortunately, SHIB has since lost some of its gains and is currently trading at $0.00001324.
BlackRock’s Stance on Bitcoin
During the market collapse on the first Monday of August 2024, BlackRock, a major investment firm, held onto its portfolio investment in Bitcoin. Despite seeing an 8% loss the previous week and facing financial distress, BlackRock stood firm in its decision not to sell its Bitcoin holdings. This decision was seen as a testament to BlackRock’s unwavering stance in the face of market turbulence. Even after recording a 14% loss on Monday, BlackRock’s investors remained committed with zero flows.
The recent market developments highlighted the impact of long-term monetary policies, token burns, and investor resilience. It is crucial for market participants to closely monitor and analyze these factors to navigate volatile market conditions effectively.