Market rebounds as Cardano founder raises concern of unlimited money printing

Japanese share market made a strong comeback on Tuesday after starting the week weak on the back of an interest rate hike. The regional rally undo the losses as Bitcoin also started trading above the $55K mark.

Cardano founder Charles Hoskinson previously raised concerns that Japan could have wider implications on greater markets. He also underlined the “reality of unlimited money printing” and how markets are not above the monetary policy actions of central banks.

Japanese markets recover with BTC above $55K

Japanese market bounce back has sparked a regional rally on Tuesday, reversing some of the losses registered on Monday. Neil Newman, head of strategy at Astris Advisory in Tokyo, told CNN that this recovery is “typical after a market crash.” Newman also emphasized that the fundamentals of Japan’s economy are sound, making exiting from equities unlikely.

???? BREAKING ????

THE JAPANESE STOCK MARKET IS
NOW UP 11.90% TODAY AFTER IT
CRASHED OVER 12% YESTERDAY.

REBOUND IS CRAZY BULLISH ????

U.S. FUTURES ARE UP 1.5%
BITCOIN BACK ABOVE $55K

WE SEE SO FCKING BACK !! pic.twitter.com/460Ou5KXSz

— Ash Crypto (@Ashcryptoreal) August 6, 2024

Cardano founder Charles Hoskinson believes that Japan’s market action could have a cascading effect on global markets, including cryptocurrencies in the short run. He also criticized those who might blame project founders during such a market downturn, stating,

“Markets are not above the reality of unlimited money printing, hundreds of false unicorns, and the Ponzi scheme that is the modern economy. Cryptocurrencies are the way out.”

He suggested that the fiat currency will not be able to fight this cascading effect but real projects can “weather any storm decade by decade.”

Hayes sees more trouble from TradFi

The market rally spilled over in the US as the S&P 500 futures also rose at least 125 points from earlier lows on Tuesday. The market rise suggests a reversal of the losses seen in the Yen carry trade. Meanwhile, with the Federal Reserve rate cuts on the horizon, Bitcoin has experienced a recovery by gaining 8% in the past 24 hours and is trading above $55,000 at press time.

Pierre Rochard, VP of research at Riot Platforms stated that if there’s an economic crisis led by Japan, and governments try to fix it by printing more money, the value of fiat money could go down due to inflation. He further predicts that the situation to be a positive for Bitcoin price, possibly explaining why BTC creator chose a Japanese name of Satoshi Nakamoto.

BitMEX co-founder Arthur Hayes is of the view that the recent market crash was just the beginning. He noted on X, “That was the first wave. Now we wait for the bodies of TradFi over-leveraged muppets to surface. Then wave two begins.”

Hayes senses that the market trouble is not over, with trouble for investors who have taken major exposure to risk. He sees administrative bailouts and more losses before it gets better.

Therefore, while the markets are showing some recovery, analysts see underlying risks and more market turmoil. That said, the debate over the sustainability of traditional financial systems continues with crypto folks.