CDS Crypto News Hawkish Policy Fears in Japan: The Prime Ministerial Race Causes Bitcoin Losses, AUD/JPY and USD/JPY Crosses Surge
Crypto News

Hawkish Policy Fears in Japan: The Prime Ministerial Race Causes Bitcoin Losses, AUD/JPY and USD/JPY Crosses Surge

118
Hawkish Policy Fears in Japan The Prime Ministerial Race Causes Bitcoin Losses, AUDJPY and USDJPY Crosses Surge

Hawkish Policy Fears in Japan Spark Bitcoin Sell-Off as Markets React

Hawkish Policy Fears in Japan Spark Bitcoin Sell-Off as Markets React

At least half of the losses in Bitcoin occurred on Monday during European trading hours, when the cryptocurrency lost 3.5%. Predicting that Shigeru Ishiba, a monetary policy hawk, would win the campaign to become Japan’s prime minister, market experts blamed him for the entire decline, citing early morning losses in the equity of that country.

Major regional equities market indices are frequently used as examples by BTC. The story that hawkish Ishiba prioritized risk assets, including Bitcoin, was called into question on Monday, as the Japanese currency declined overall, except for a little early morning bid. On the other hand, the AUD/JPY cross, which analysts view as a risk barometer, increased by 1.15% on Monday, providing good signals to bitcoin and other riskier assets. The USD/JPY pair increased by 1%.

Bitcoin Tumbles as Traders Look Beyond Japan’s Politics: Yen Emerges as Key

It is evident that markets are not concerned about Ishiba’s alleged support for monetary tightening and the possibility of quicker rate increases by the Bank of Japan (BOJ) at this time. Late in July, the central bank increased interest rates, which led to a widespread unwinding of risk-on bets financed by low-cost loans denominated in Japanese yen. In a matter of days, BTC decreased from approximately $65,000 to $50,000 back then.

It seems that Monday’s events involved more factors than only the influence of Ishiba and Nikkei. Perhaps BTC was simply overbought and due for a good old bull market retracement following a near 90-degree climb from lows under $53,000. However, Amundi Investment Solutions says that the yen, not the Nikkei, should be watched since it is a US recession trade.

For more up-to-date crypto news, you can follow Crypto Data Space.

Hawkish Policy Fears in Japan: The Prime Ministerial Race Causes Bitcoin Losses, AUD/JPY and USD/JPY Crosses Surge
Written by
lectertodd

Lectertodd is 27 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

Leave a comment

Leave a Reply

Related Articles

WLFI Token Presale: Over 100,000 Accredited Investors Whitelisted

World Liberty Financial prepares for its WLFI token launch, backed by the...

BTC Price Analysis: Bullish Sentiment Ahead of Elections

Bitcoin surges past $65,000 as traders anticipate bullish trends ahead of the...

Bitcoin ETFs Reach $18.9 Billion in Net Inflows: A Historic Milestone

Bitcoin ETFs have achieved a historic milestone with $18.9 billion in net...

Bitcoin Price Update: Is a New Bull Market on the Horizon?

Bitcoin's price surged past $65,000 for the first time this month, now...