Crypto Market Recovers As Japan’s Nikkei Stock Index Rises 12%

After a massive stock market and crypto market selloff on Monday, August 5, the broader crypto market has recovered to a good extent with the Bitcoin price recovering 10% from its Monday bottom and surging past $55,400 as of press time. The altcoins have staged an even stronger recovery with more than 5-10% gains.,After crashing more than 13% yesterday, Japan’s Nikkei 225 Index has recovered more than 11% in today’s trading session. This was due to a strong recovery in the US futures market after key macroeconomic data, offering hope amid the market gloom.,Japanese equity market bounced back strongly on Tuesday, with the top two indices – Nikkei and Topix – gaining 12% each today. The bounce back in the US futures market prevented another freefall in the Japanese market as well as the crypto market. Tomo Kinoshita, a global market strategist at Invesco Asset Management in Tokyo, said:,The surge in the Japanese Yen caused an unwinding of the Japanese carry trade, creating a major mayhem in global equities over the last three trading sessions. This coupled with the fears of things quickly spiraling into a US recession.,Crypto market investors took this opportunity with many buying the dips as predicted by banking giant JPMorgan. Bitcoin is up 3% covering above its crucial support levels of $54,000. From yesterday’s lows of under $50,000, the BTC price has covered up by more than 10% as market veterans like Michael Saylor showed confidence in HODL Bitcoins.,Also Read: Bitcoin Leads Crypto Outflow With $400M Lost Amid Recession Fears,Earlier, there were reports of a Fed emergency meeting for the US central bank to intervene amid the collapsing global market and announce rate cuts. However, despite this not being the case on Monday, the US market staged a strong recovery as the US recession fears abated to a great extent with the PMI hitting 51.4 and the employment numbers being on the trajectory of improvement.,Thus, the possibility of a forced intervention by the Fed seems unlikely at this stage. However, the expectation of a 50 basis points rate cut in September has surged to 75.5%, as per data by the CME FedWatch tool.,,Amid the recent crypto market recovery, Bitcoin and Ethereum remain to be investors’ preferred choices as they are considered safe assets amid the current uncertainty. Moreover, the weak US dollar index (DXY) pushes for the potential buying of risk assets like Bitcoin by investors.,Also Read: Arthur Hayes Issues Dire Warning On Second Wave Of Market Crash,