Bitcoin drops to $53k after Bank of Japan rate hike: Ether falls following global market shock.
Key receivers
Bitcoin and Ether are down significantly, with Bitcoin losing $53K and Ether all their year-to-date gains. Japan's rate hike had a major impact on global markets, including significant drops in the Nikkei and Nasdaq.
Share this article
Following the Bank of Japan rate hike, the price of BTC and Ether has plummeted, with BTC falling to $53k and ETH erasing 2024 gains.
Severe crypto market correction Bitcoin (BTC) and Ethereum (ETH) prices are on the decline, with BTC falling to $53,000, and ETH turning negative amid widespread market panic for 2024. The sell-off accelerated on Sunday night US hours, pushing Bitcoin and Ethereum to December prices to levels not seen since February.
Bitcoin is down 12% in the past 24 hours and 20% over the week, while Ethereum is down 21% in 24 hours and 30% in the past week, erasing its year-to-date gains. Crypto indices from CoinGecko show that most markets are down by 10% in the last 24 hours, indicating a widespread fall in the crypto market. In particular, the decentralized financial sector fell 17.3% in the last 24 hours, down from 27.8% last week.
Bank of Japan rate hikes impact crypto markets.
The big correction was triggered by the Bank of Japan's unexpected interest rate hike last week, which sent the yen tumbling and Japanese stocks lower, according to a report released three hours before the Bloomberg report. The Nikkei index has fallen nearly 15% in three sessions and is now 20% below its mid-July peak. This volatility has spread globally, with the US Nasdaq sliding more than 5% over the past two trading sessions last week.
Adding to market uncertainty, the US Federal Reserve surprised investors with confusion over possible rate cuts in September. In response, traders opened up a 100% probability of lower US base rates in September, with a 71% probability of a 50 basis point cut. The US 10-year Treasury yield also fell sharply to 3.75%, down from 4.25% a week ago.
The chart shows that Bitcoin's price has fallen significantly in a short period of time, with its value dropping from around $70,000 to around $55,000. The downward trend is steep and consistent, with very few periods of price recovery or stabilization throughout the period. This dramatic 17% drop in Bitcoin price indicates a significant market correction or selloff, which can be triggered by broader economic conditions.
Share this article
