The expert named the possible consequences of the collapse of Asian stock markets and predicted what will happen next

Ukraine may feel the effects of the collapse in Asian stock markets. It may manifest itself in a decline in export revenues. This opinion was expressed by Olena Sosiedka, co-founder of Ukraine's first fintech ecosystem, Соnсоrd Fintech Solutions, UNN reports.

Context

On Monday, August 5, Asian and American stock markets collapsed. As a result, global companies lost billions of dollars. In addition, cryptocurrencies fell sharply, with one of the most famous coins, Bitcoin, dropping 20% to $49,000.

"A collapse in Asian stock markets could trigger a chain reaction in global financial markets, threatening economic stability in some countries. This could lead to tighter credit conditions and a decrease in investment in high-risk assets. Ukraine may face a decline in export revenues as a result of this collapse, especially if demand for goods and raw materials declines due to global uncertainty," Sosiedka wrote on her Facebook page.

Among the main reasons that led to the sharp decline in stock markets in Asia, the expert named the interest rate hike by the Bank of Japan. According to Sosiedka, this led to the strengthening of the yen and a sell-off in Japanese stocks, which in turn hit export-oriented sectors hard.

In addition, stock markets were affected by the US employment data, which turned out to be worse than expected. And this, according to Sosedka, increased fears of a possible recession. "This news caused a wave of sales in global markets, increasing pressure on investors. Along with economic factors, geopolitical tensions, especially in the Middle East, also contributed to the panic in the markets," Sosedka said.

As for the fall in the value of cryptocurrencies, in particular Bitcoin, the expert said it was provoked by regulatory changes.

"Tighter regulation and the sale of large volumes of Bitcoin, including government sales, have put additional pressure on the market and caused the biggest drop in the value of the coin in almost two years," Sosedka explained.

According to her, the fall of cryptocurrencies, including Bitcoin, to below $50 thousand may affect the market, but it also provides an opportunity for reforms and attracting investors, provided that a favorable regulatory environment is created.

"Short-term fluctuations in cryptocurrencies are likely to continue, but the long-term outlook is positive. It is expected that cryptocurrencies may recover if macroeconomic conditions stabilize and the geopolitical situation improves. Such adjustments may create opportunities for new crypto investors," predicts Sosedka.

Recall

UNN has launched a series of publications that talks about digital currencies and their possibilities. Our first material was devoted to the technology underlying cryptocurrencies - the blockchain: "Crypto for Dummies". Part 1: What is blockchain and its "features" that few people know about.

The second article is about bitcoin halving: "Crypto for Dummies". Part 2: What is halving and why is it causing a stir in the cryptocurrency market.

Third material: Crypto for Dummies. Part 3: step-by-step instructions on how to buy a crypto coin. 

The fourth material: Crypto for Dummies. Part 4: What are coins and tokens and what are their differences.

Fifth material: "Crypto for Dummies". Part 5. Cold and hot wallets.

Sixth material: "Crypto for Dummies". Part 6. Security when using cryptocurrency exchanges and exchangers.