Here’s Why Bitcoin, ETH, BNB, SHIB Prices Falling Sharply

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market volatility and unpredictability. Today, we’re witnessing a classic example of the market’s inherent nature – Bitcoin (BTC) and other cryptocurrencies are sliding amidst Asian market developments, with the Nikkei 225 index taking a significant hit.

After experiencing gains for the past week, Bitcoin (BTC) and other cryptocurrencies are currently experiencing a drop in value early on Monday. At present, BTC is trading at $64,536, marking a 1.97% decrease. This decline coincides with a nearly 5% fall in the Japanese Nikkei 225 index. Additionally, Shigeru Ishiba’s recent victory has resurfaced worries about potential interest rate increases. Other major cryptos such as ETH and BNB have also dipped, while meme coins like DOGE and SHIB are seeing even steeper corrections today.

Bitcoin, ETH, SHIB Slide Amid Asian Market Developments

In September this year, Bitcoin saw a remarkable surge that outperformed the modest predictions of the market, gaining approximately 9%. Despite efforts by bulls to keep Bitcoin’s price above $65,000, events in the Japanese market have caused some selling pressure on the asset. Additionally, geopolitical tensions such as Israel’s attack on Hezbollah leader Hassan Nasrallah have contributed to a sense of uncertainty in the market.

Despite the anticipation among the crowd for Bitcoin (BTC) to reach a new all-time high due to recent Fed rate cuts, it may prove challenging. As per crypto analytics platform Santiment, the surge in social sentiment indicates a significant increase and thus, a potential new all-time high might not be imminent. The platform also noted that there are currently 1.8 bullish posts for BTC for every bearish post, suggesting that the market often moves contrary to crowd’s expectations.

Here’s Why Bitcoin, ETH, BNB, SHIB Prices Falling Sharply

Ali Martinez, a well-known crypto analyst, posited an intriguing scenario in a recent message: “The most effective way to thwart everyone’s expectations might be for Bitcoin to plummet to $60,000, then surge to $66,000, dip back to $57,000, and eventually break through towards $78,000!” However, the latest data on inflows into spot Bitcoin ETFs indicates that institutions are once again actively purchasing during market dips, suggesting they remain engaged in the game.

Just like other altcoins, they’ve experienced a similar wave of selling pressure. For instance, Ethereum (ETH), BNB Coin (BNB), Dogecoin (DOGE), and others have taken a dip by approximately 2.4%. In contrast, XRP has bucked the broader market trend, gaining about 5.3% to reach $0.645. However, meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) have been hit hardest today, correcting by 5-8% following last week’s rally.

Additionally, the markets seem poised to remain unpredictable as they prepare for the upcoming US Jobs report, preceding the expected bullish October trend (Uptober rally).

Nikkei 225 Index Slides 4.6%

Currently, at the moment of reporting, the Nikkei 225 Index is dropping by 4.64%, dipping below the 38,000 mark due to a robust Yen. The recent victory of Shigeru Ishiba has sparked speculation among analysts that the Bank of Japan will adopt a more aggressive stance on monetary policy, potentially increasing interest rates. Since the announcement last week, the Yen has been gaining strength against the USD.

Here’s Why Bitcoin, ETH, BNB, SHIB Prices Falling Sharply

According to Michael Wan, a financial analyst at Mitsubishi UFJ Financial Group, he anticipates that Ishiba will uphold the current situation of backing the Bank of Japan’s normalization, thereby bolstering the Japanese yen.

In contrast, Ishiba’s stance appears somewhat unclear when he mentioned over the weekend that “it’s important to keep monetary policy easy-going due to the prevailing economic circumstances.

Despite the ongoing economic uncertainties on a large scale, it’s widely expected that Bitcoin might replicate its past success by experiencing a significant surge in the fourth quarter of this year. Already, many traders have set their sights on Bitcoin reaching $100,000 before the end of the year.

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2024-09-30 07:42