VIX falls, buying interest emerges on dips, Bitcoin rises above 56K

After two days of brutal sell-offs, the US stock market finally saw a rebound, with the VIX fear index dropping by 28% and investors starting to buy on the dip. Cryptocurrencies also rebounded, with Bitcoin surpassing 56K and Ethereum hovering around 2,450.

Trichet: Yen Adjustment Should Have Happened Earlier, No Need for Emergency Rate Cut

Former European Central Bank (ECB) President Jean-Claude Trichet mentioned in an interview with CNBC yesterday that the adjustment of the yen against the US dollar should have occurred earlier and could be healthy for the market. He also stated that it is not yet time to panic about the broader market impact.

Trichet added that there are positive factors present in the US, Europe, and the global economy, and these positive factors still exist. He believes there is no reason to panic about the US. Regarding the market speculation about an emergency rate cut by the Federal Reserve, he pointed out:

The Federal Reserve may be "hesitant" between 25 and 50 basis points, but the current data does not support an emergency rate cut.

In recent days, several Federal Reserve officials have reassured the market and emphasized that "the economy is not in recession."

Dow drops another thousand points, Federal Reserve officials reassure: Economy is not in recession

BTC Rebounds to 56K

After several days of decline, Bitcoin has slowly rebounded to 56K, with the upper resistance level observed at 58K, which is also the neckline position formed since early March.

ETH Hovers around $2,450

ETH has been influenced by rumors of dumping by Jump Trading recently, showing a weaker trend, but buying interest in Ethereum spot ETF has emerged. The outflow of Grayscale ETHE narrowed again yesterday, and the subsequent impact on Ethereum spot ETF is expected to diminish gradually.

Unfazed by price drops, Ethereum spot ETF sees net inflow of $48.8 million

Market Volatility Requires Proper Capital Allocation and Risk Management

However, BitMEX founder Arthur Hayes reminds everyone:

Now, we wait for the corpses of overleveraged fools in traditional finance to float to the surface before the second wave begins. If there is to be a bailout, the market needs to offer more pain by Friday. Enjoy the respite now, the war will continue.

He also advises that with recent market volatility, it is crucial to ensure proper capital allocation and risk management!