Japanese Stock Market Crisis Drags Down Bitcoin, Ethereum, and XRP

Bittime – Japan’s stock market crisis occurred after the Bank of Japan announced an increase in interest rates. This negative sentiment impacts other asset classes, including cryptocurrencies such as Bitcoin, Ethereum, and XRP.

Japanese Stock Market Drastic Decline

On August 2, the Japanese stock market experienced heavy losses for the second trading day of the month. This decline was triggered by the rapid strengthening of the yen by the Bank of Japan and the sale of shares in the United States.

For more than a year, Japanese stocks have experienced a series of rallies driven by the depreciation of the local currency and strong corporate performance. However, the performance of the Japanese stock market changed at the end of this week.

The Topix index fell 6.1% on Friday, making it its worst two-day performance since the 2011 earthquake and tsunami. The Nikkei 225 index also fell 5.8% to 35,909.70.

Read Also: Chance of Bitcoin Price Returning to Zero or Rising to $1 Million Level 

Impact on Cryptocurrency Markets

The crisis in the Japanese stock market also had an impact on the cryptocurrency market. Bitcoin fell 0.79% in the last 24 hours, trading at $64,263.73. Ethereum fell 1.96% to $3,135.14.

XRP experienced the sharpest decline, falling 6.75% to $0.5705. This decline can be attributed to many of Ripple Labs' partners based in Japan, being impacted by the market crisis.

Other Factors Affecting the Market

Apart from the impact of the Japanese stock market, other factors also influence cryptocurrency prices. The FOMC data released on Wednesday also had an impact on Bitcoin. Apart from that, Ripple's large XRP transactions have also attracted market attention.

Overall, the cryptocurrency market is currently under pressure due to various factors, including global market conditions and economic uncertainty.

Impact of XRP Price Drop

The significant drop in XRP prices, especially in the context of the decline in the Japanese stock market, has raised concerns among investors. Some of the key factors contributing to this decline are:

1. Correlation with Traditional Markets

XRP, like many other cryptocurrencies, shows correlation with traditional markets. The sharp decline in the Japanese stock market has affected overall investor sentiment, including in the cryptocurrency market.

2. Regulatory Uncertainty

Ripple's legal case with the SEC continues to create uncertainty for investors. Despite these positive developments, regulatory issues are still the main factor influencing the price of XRP.

3. Market Sentiment

Negative news regarding the Japanese stock market, coupled with falling Bitcoin and Ethereum prices, has created bearish sentiment across the cryptocurrency market, including XRP.

Read Also: What is Bitcoin Mining and How Does It Work?

Recovery Potential and Important Factors

Although the current situation looks challenging, several factors may influence the recovery of XRP prices:

• Legal Case Resolution: A positive resolution of Ripple's case with the SEC could provide a major boost to the XRP price.
• Institutional Adoption: Increased use of XRP by financial institutions could increase demand and support price increases.
• Technological development: Innovations in blockchain technology and the XRP ecosystem may attract investor interest.
• Global Market Sentiment: Improving global economic conditions and increased investor confidence could help drive price recovery.

How to Buy Crypto on Bittime

You can buy and sell crypto assets easily and safely via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also ensure you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Study Complete Guide How to Buy Crypto on Bittime. 

Monitor graphic movement of Bitcoin (BTC) price, Ethereum (ETH), Solana (SOL), and other cryptos to find out today's crypto market trends in real-time on Bittime.