Bitcoin and many leading altcoins entered the new week with a decline. The decline in the Japanese Nikkei index and Shigeru Ishiba's victory played an important role in this decline. In addition, US unemployment data, which creates uncertainty in the market, also affects the mood of investors.
After the rally last week, Bitcoin$BTC
(BTC) has reached $64,457 levels, but the market has faced selling pressure this morning. The price of BTC is trading at $64,536, down 1.97%. Japan’s Nikkei 225 index is down almost 5%. Shigeru Ishiba’s victory has revived concerns about interest rate hikes. Major altcoins like Ethereum (ETH) $2,634, BNB (BNB) and memecoins Dogecoin (DOGE) $0.122700 and Shiba Inu (SHIB) are also down.
Bitcoin has been impressive throughout September, gaining 9%. However, as the bull market struggles to keep Bitcoin’s price above $66,000, developments in Japan have added selling pressure. Geopolitical tensions in Israel have also added to the uncertainty. “The market is moving contrary to expectations,” crypto analytics firm Santiment said.
At press time, the Nikkei 225 Index was down 4.64% against the stronger Japanese yen, falling below 38,000. Shigeru Ishiba’s victory has raised concerns about further rate hikes from the Bank of Japan. Following the announcement last week, the Japanese yen has appreciated sharply against the US dollar.
“Our baseline assumption is that Ishiba is projecting the BOJ’s position to support normalization, and that should provide support to the Japanese yen,” Mitsubishi UFJ Financial Group analyst Michael Wan told Bloomberg. However, it’s worth noting that Ishiba’s current stance is unclear, and he said over the weekend that monetary policy should remain accommodative given current economic conditions.
Amid these macroeconomic uncertainties, there are strong expectations that Bitcoin could repeat its past and target $100,000 by the end of the year. Investors are expecting BTC to make a strong rally in the fourth quarter.
Ethereum, BNB, Dogecoin, and other altcoins entered corrections, losing over 2%. On the other hand, XRP rose 5.3% to $0.645 despite the general market correction. Memecoins were the most affected assets by today’s correction; Dogecoin and Shiba Inu fell by 5-8%.
Markets are currently awaiting the release of US unemployment data ahead of the anticipated “Uptober” rally. Veteran crypto analyst Ali Martinez has suggested that Bitcoin could experience volatility during this period and move towards $78,000. Inflows into spot Bitcoin ETFs over the past week suggest that institutional investors are returning to the market after capitalizing on recent declines.
At this point, Bitcoin and altcoins are losing value due to market movements and geopolitical developments in Japan. Altcoins continue to decline under the general market selling pressure. Market participants are taking a cautious approach considering the announcement of US unemployment data and possible economic policies.
