Following last week's rally, Bitcoin (BTC), along with the broader crypto market, has been under selling pressure in early trading Monday. BTC price is down 1.97% and trading at the $64,536 level while Japan's Nikkei 225 index is down nearly 5% today. Additionally, last week's victory for Shigeru Ishiba has once again raised concerns about further interest rate hikes. Top altcoins such as ETH and BNB are also facing downturns, and meme coins such as DOGE and SHIB are seeing even sharper corrections today.
Bitcoin, ETH, SHIB fall amid development of Asian market
Bitcoin has seen an incredible rally in September, rising 9% this month, beating the market's conservative expectations. Bulls have tried to keep Bitcoin prices above $65,000, but developments in the Japanese market have put some selling pressure on Bitcoin assets. Other geopolitical developments also increased uncertainty, including Israel's killing of Hezbollah leader Hassan Nasrallah.
The crowd was hoping for BTC to hit new all-time highs following the Fed's interest rate cut, but that won't happen easily. Cryptocurrency analysis platform Santiment reported that social sentiment has skyrocketed so much that we may have to wait a bit for the crowd to hit new all-time highs. We noted that there are currently 1.8 bullish posts for BTC for every bearish post. “Historically, markets always move in the opposite direction of crowd expectations,” Santimento pointed out.
“The best way to ruin everyone's dreams is for Bitcoin to drop to $66,000, rebound to $66,000, and rise to $57,000,” popular crypto analyst Ali Martinez said in a message last week. I think it will go back up to $1,000 and eventually break towards $78,000!” However, last week's inflows into Spot Bitcoin ETFs indicate that institutional investors are back in the game of buying the recent dip.
Altcoins are under similar selling pressure, with Ethereum (ETH), BNB Coin (BNB), and Dogecoin (DOGE) all seeing a 2.4% correction. Meanwhile, XRP ignored the broader market correction and rose 5.3% to reach the $0.645 level. Meme coins have suffered the most today after last week's party, with Dogecoin (DOGE) and Shiba Inu (SHIB) correcting 5-8% today.
Additionally, the market is likely to remain poised for volatility ahead of the U.S. jobs report ahead of the expected Uptober rally.
Nikkei Stock Average 4.6% drop
At the time of writing, the Nikkei Stock Average is trading at 4.64%, below 38,000 yen, due to the strong yen. Following Shigeru Ishiba's victory last week, many analysts believe the Bank of Japan will take a hawkish stance on monetary policy, announcing further interest rate hikes. Following last week's announcement, the yen soared against the dollar.
Regarding this development, Michael Wang, an analyst at Mitsubishi UFJ Financial Group, told Bloomberg: “Our base scenario is that Ishiba will reflect the current state of support for BOJ normalization and therefore support the yen.” Ta.
However, Ishiba's current position is less clear, commenting at the weekend: “Given the current economic situation, the trend is that monetary policy must remain accommodative.”
Amid this macro uncertainty, traders have already set a target of $100,000 by the end of the year, raising high hopes that Bitcoin will repeat history with a strong fourth-quarter rally. It is being
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a deep understanding of financial markets. His interest in economics and finance led him to focus on the emerging blockchain technology and cryptocurrency market. He is passionate about continuous learning and stays motivated by sharing the knowledge he gains. In his free time, Bhushan enjoys reading thriller fiction novels and sometimes hones his cooking skills.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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