Japan’s debt crisis jolts crypto markets, testing their resilience and reviving Bitcoin’s role as a system hedge against fragile fiat systems.
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.
