Crypto markets have been shaken by a recent stock sell-off. Lark notes that while the S&P 500 dropped 1.7%, crypto markets were hit harder. September is typically a turbulent month for markets, and this year seems to be following that pattern.
-
Adding to the uncertainty, Japanese markets opened 4% down, increasing fears about potential economic issues.
The sell-off was also partly triggered by news of a US Department of Justice subpoena issued to NVIDIA over anti-trust allegations. However, Lark doesn't expect this to have a long-term negative impact on the company, viewing it as a temporary setback.
More concerning for investors is the poor economic data, particularly in manufacturing. Lark points out that these indicators show signs of stagflation - a combination of stagnant economic growth and inflation. This economic scenario is particularly worrying for market participants.
Despite the current market fears, Lark remains generally optimistic about crypto's future. While he anticipates a challenging September, he sees potential for exciting developments in the fourth quarter of the year. This outlook underscores the often cyclical nature of crypto markets.
