13:10 ▪
4
Minimum read time up to ▪
The virtual currency market, led by Bitcoin and altcoins, is undergoing a turbulent phase. After last week's notable rally, the market suddenly changed, throwing many investors into uncertainty. We believe this decline is not just a temporary phenomenon, but rather the result of a combination of factors, from geopolitical dynamics to movements in Asian markets.
Impact of Asian market
Volatility in Asian markets has played a key role in the decline of Bitcoin and altcoins in recent days. Japan's benchmark index, the Nikkei 225, plunged nearly 5%, a sharp decline that had a domino effect on digital assets.
Bitcoin, which until recently hovered above $66,000, came under heavy selling pressure and fell nearly 2% to trade at $64,536.
One of the main reasons for this decline is growing concerns about the Bank of Japan's decisions. The recent victory of influential politician Shigeru Ishiba has reignited concerns about rising interest rates in the archipelago.
Such a decision could cause the yen to appreciate, prompting a sell-off of risky assets such as Bitcoin.
Meanwhile, geopolitical tensions, particularly the assassination of Hezbollah leader Hassan Nasrallah, have exacerbated global economic uncertainty, which has naturally affected the cryptocurrency market.
Financial markets often react to broader trends. While some expected Bitcoin's continued rise, Asian markets are showing how unpredictable the situation is.
Both institutional and retail investors should consider these new data to adjust their strategies.
Altcoins get caught up in the turmoil
Bitcoin's decline led to a notable decline in altcoins. Ethereum, BNB, and even Dogecoin have recorded declines ranging from 2% to 5%.
Altcoins are already more volatile than Bitcoin, so they are often disproportionately affected during market corrections. This time was no exception. Ethereum, for example, is trading at $2,634, down from its previous high.
However, all is not gloomy for all altcoins. To everyone's surprise, XRP managed to buck this downward trend by registering a 5.3% increase and reaching $0.645. This upward trend, although gradual, shows that some cryptocurrencies remain prominent despite the market-wide correction.
In this context, meme coins such as Dogecoin and Shiba Inu were particularly affected. Falling in the range of 5% to 8%, these cryptocurrencies, which are popular among short-term traders, show how sensitive their values are to sudden fluctuations in the market.
As the market continues to be turbulent, all eyes are on the upcoming U.S. unemployment rate statistics.
These numbers are important for understanding a country's economic health and can have a significant impact on the future trends of Bitcoin and altcoins. While the deteriorating U.S. job market could increase selling pressure, signs of recovery could offer a glimmer of hope to investors hoping for Bitcoin to reach $1.5 million.
Get the most out of your Cointribune experience with the Read to Earn program! Earn points every time you read an article and get access to exclusive benefits. Sign up now and get rewards.
The appeal of Bitcoin in 2017, creating important documents. This essay aims to revitalize Avance, which is the forefront of transactions and the center of virtual currency. En tant que redacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
