What Japan’s fiscal debt crisis means for global crypto markets
What the August 2024 crypto crash revealed about global systemic risk
Crypto markets sold off sharply in August 2024 in response to global macro dislocation caused by Japan’s fiscal crisis, underscoring their sensitivity to liquidity shocks and systemic risk.
In the first week of August 2024, Bitcoin (BTC) plummeted nearly 17% from its all-time high of $82,000, reversing a month-long rally fueled by ETF inflows and institutional optimism. Ether (ETH) dropped below $3,000, wiping out gains made earlier in the summer.
Altcoins followed in brutal synchronicity, with Solana (SOL), Avalanche (AVAX) and Polkadot (DOT) losing more than 25% of their market cap in a matter of days.
As a…
