After the last week of bullishness, Bitcoin (BTC) as well as the broader crypto market came under selling pressure from the early trading hours on Monday. BTC price is down 1.97% at $64,536 level as Japan’s Nikkei 225 index slides nearly 5% today. Furthermore, Shigeru Ishiba’s victory last week has once again raised fears of further interest rate hikes to come. Top altcoins like ETH, BNB have also faced the crisis with meme coins like DOGE and SHIB seeing an even stronger correction today.
Bitcoin, ETH and SHIB slide amid Asian market developments
Bitcoin saw a stunning rise this month in September, while beating moderate market expectations with gains of 9%. Although the bulls attempted to keep the BTC price above the $65,000 levels, Japanese market developments put some selling pressure on the asset. Other geopolitical developments, such as Israel’s assassination of Hezbollah leader Hassan Nasrallah, have also added to the uncertainty.
While the crowd awaits a new 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 spiked sharply and hence the crowd may have to wait a bit to see a new all-time high. He noted that there are currently 1.8 bullish messages for BTC for every bearish message. “Historically, markets always move in the opposite direction of public expectations,” Santiment noted.
In a post last week, popular crypto analyst Ali Martinez wrote: “I think the best way to disrupt everyone’s dreams would be for Bitcoin to drop to $60,000, rebound to $66,000, come back to 57 000 and finally reaches $78,000! However, last week’s inflows into spot Bitcoin ETFs show that institutions are back in the game by buying recent dips.
Altcoins also faced similar selling pressure, with Ethereum (ETH), BNB Coin (BNB), Dogecoin (DOGE), and others seeing 2.4% corrections. On the other hand, XRP is defying a broader market correction with gains of 5.3% moving to $0.645 levels. Meme coins suffered the most today after last week’s party, with Dogecoin (DOGE) and Shiba Inu (SHIB) correcting 5-8% today.
Additionally, markets are expected to remain volatile, preparing for the release of U.S. jobs data ahead of the expected October rally.
Nikkei 225 index slips 4.6%
At press time, the Nikkei 225 index is trading 4.64% higher, sliding below 38,000 levels amid a strong yen. Shigeru Ishiba’s victory last week led many analysts to believe that the Bank of Japan would take a hawkish stance on monetary policy by announcing further rate hikes. Following last week’s announcement, the yen soared against the dollar.
Speaking on the development, Michael Wan, analyst at Mitsubishi UFJ Financial Group, Inc. told Bloomberg: “Our base case is that Ishiba reflects the status quo of the Bank of Japan’s normalization support and therefore provides support for the yen. »
However, Ishiba’s current position remains less clear, as he said over the weekend that “monetary policy must remain an accommodative trend given current economic conditions.”
Amid these macroeconomic uncertainties, there are high expectations that Bitcoin could repeat history with a strong BTC rally in the fourth quarter, with traders already setting targets of $100,000 before the end of the year.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a deep understanding of financial markets. His interest in economics and finance has led him to focus on the emerging markets of Blockchain technology and cryptocurrencies. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller novels and occasionally explores his culinary skills.
Disclaimer: Content presented may include the author’s personal opinion 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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