Following the last week of upside, Bitcoin (BTC) along with the broader crypto market has come under selling pressure in the early trading hours on Monday. The BTC price is down 1.97% trading at $64,536 levels as the Japanese Nikkei 225 index slides nearly 5% today. Also, the victory of Shigeru Ishiba last week has once again led to concerns of more interest rate hikes ahead. Top altcoins like ETH, BNB have also faced the slump with meme coins like DOGE and SHIB seeing even sharper correction today.
Bitcoin, ETH, SHIB Slide Amid Asian Market Developments
Bitcoin had a stunning run-up this month in September while beating the market’s subdued expectations with 9% gains. Although the bulls tried to hold the BTC price above $65,000 levels, the developments in the Japanese market has putting some selling pressure on the asset. Other geopolitical developments like Israel killing Hezbollah leader Hassan Nasrallah also added to the uncertainty.
While the crowd has been waiting for a fresh all-time high for BTC following the Fed rate cuts, it won’t come very easily. Crypto analytics platform Santiment reported that social sentiment has skyrocketed highly and thus, the crowd might need to wait a bit to see a new all-time high. It noted that currently there are 1.8 bullish posts for BTC for every bearish post. “Markets historically always move the opposite direction of crowd’s expectations,” noted Santiment.
Courtesy: Santiment
In a message last week, popular crypto analyst Ali Martinez wrote: “I think the best way to mess with everyone’s dreams would be for Bitcoin to drop to $60,000, rebound to $66,000, retrace back to $57,000, and finally break out towards $78,000!” However, last week’s inflows into spot Bitcoin ETFs show that institutions are back in the game buying the recent dips.
Altcoins have also been facing similar selling pressure, with Ethereum (ETH), BNB Coin (BNB), Dogecoin (DOGE), and others seeing 2.4% corrections. On the other hand, XRP defies broader market correction with 5.3% gains moving to $0.645 levels. Meme coins have suffered the most today after last week’s party with Dogecoin (DOGE) and Shiba Inu (SHIB) correcting 5-8% today.
Furthermore, the markets are likely to stay volatile bracing for the US Jobs data release ahead of the anticipated Uptober rally.
Nikkei 225 Index Slides 4.6%
As of press time, the Nikkei 225 Index is trading at 4.64% slipping under 38,000 levels amid the Strong Yen. Shigeru Ishiba’s win last week has led many analysts to believe that the Bank of Japan would undertake a hawkish stand on monetary policy announcing further rate hikes. Following the announcement last week, the Yen went soaring against the USD.
Courtesy: Bloomberg
Speaking on the development, Michael Wan, an analyst at Mitsubishi UFJ Financial Group, Inc. told Bloomberg: “Our base case is for Ishiba to reflect the status quo of supporting Bank of Japan normalization and hence provide support for the yen.”
However, Ishiba’s current stand remains less clear while commenting on the weekend that “monetary policy must remain accommodative as a trend given current economic conditions.”
Amid these macro uncertainties, there’s strong anticipation that Bitcoin could repeat history with a strong BTC Q4 rally with traders already giving targets of $100K before the year-end.
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