Bitcoin and Altcoin Price Falls, Due to Japanese Stock Market Collapse?

Bittime - The crypto market is experiencing severe shocks. The value of various digital assets, especially Bitcoin and Ethereum, has fallen sharply in recent days. The cause? The plunge in the Japanese stock market was triggered by fears of a global recession.

Bitcoin and Altcoin Price Drops, A Heavy Blow For Investors

This drastic drop is a major blow to crypto investors who have tasted the sweetness of profits in the last few months. 

Bitcoin, which touched an all-time high of around $70,000 (Rp. 1.1 billion) some time ago, has now fallen 17% to $50,350 (Rp. 809 million). Meanwhile, Ethereum also experienced a sharp decline of 23%.

The decline in the crypto market is in line with the weakening of stock exchanges in the Asia Pacific region. The Nikkei 225 index in Japan, for example, collapsed by 7%. The cause is the Bank of Japan's decision to raise its benchmark interest rate. 

This is quite a surprising move because Japan has been known for its ultra-loose monetary policy.

Japanese Interest Rate Hike Sparks Concerns

Rising interest rates in Japan sparked fears of a global recession. Investors have become more careful in allocating their funds, including in the crypto market. 

Apart from that, increasing geopolitical tensions between Iran and Israel also add to uncertainty in global financial markets.

This situation is further exacerbated by the poor performance of the technology sector in the United States. Several giant technology stocks experienced sharp declines, which also weighed on overall investor sentiment.

Analysts predict that the crypto market will still experience high volatility in the future. The threat of a global recession and geopolitical uncertainty are the main factors influencing price movements. 

Therefore, investors are advised to remain cautious and carry out careful analysis before making investment decisions.