What caused BTC to fall below 64,000 again from 66,000;
After the Fed cut interest rates by 50 basis points nearly two weeks ago, Bitcoin (BTC) quickly rose by about 14%, which then seemed to have the conditions to trigger a massive sell-off in Bitcoin (BTC), and the emergence of a new Japanese prime minister last weekend seemed to be the fuse.
Unexpectedly, Japan's ruling party chose Shigeru Ishiba as the next prime minister. There is not much information within the Japanese Liberal Democratic Party, but it is generally believed that Shigeru Ishiba supports the Bank of Japan's plan to restore monetary policy to normal (i.e., raising interest rates). After being elected prime minister, Shigeru Ishiba called for early elections at the end of October.
Recall that it was the Bank of Japan's mild interest rate hike at the end of July that led to a sharp drop in the so-called yen carry trade and subsequently triggered panic in global financial markets, causing Bitcoin to plummet from about $70,000 to below $50,000 in just a few days.
The sell-off was so dismal that the Bank of Japan had to send in a former official to calm the market, saying the bank would not raise rates again in 2024.
However, last weekend's shock election triggered another rise in the yen, and Japan's Nikkei average quickly fell 5%. The sell-off apparently spread to Bitcoin, and the price of Bitcoin quickly fell from around $66,000 to $63,300. The price of Bitcoin has now rebounded to $63,900, down about 3% from late last Friday.
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