Nikkei Plunge Triggers Crypto Sell-Off! Bitcoin, Ethereum Prices Hit Hard
Elena R30 Sept 20242 min read
Bitcoin (BTC) has dropped nearly 2%, trading around $64,536, following a sharp 4.6% fall in Japan’s Nikkei 225 index. Concerns over possible interest rate hikes, sparked by Shigeru Ishiba’s recent election victory, have rippled through the markets, impacting cryptocurrencies.
Top altcoins like Ethereum (ETH), Binance Coin (BNB), and meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) have all taken hits, with losses ranging from 5% to 8%.
This news has sent shockwaves throughout the crypto market. What’s the real deal? Let’s uncover.
Why Are Bitcoin’s September Gains Fading?
Selling Pressure Amid Geopolitical Tensions
After a strong 9% gain in September, Bitcoin is now facing selling pressure, as bulls struggle to hold its price above $65,000. This drop comes at a time of rising geopolitical tensions, including recent military actions in Israel, which have unsettled markets even further.
Data from analytics firm Santiment shows that Bitcoin’s social sentiment remains bullish, with 1.8 positive posts for every negative one. However, markets often move against the crowd’s expectations, suggesting Bitcoin’s next all-time high might take longer to materialize.
Will Bitcoin Dip Further?
Popular crypto analyst Ali Martinez believes Bitcoin could drop to around $60,000 before making a significant rally toward $78,000. Meanwhile, institutional investors seem to be coming back into the market. Recent inflows into spot Bitcoin ETFs show that some investors are taking advantage of the price dip to buy more BTC.
Altcoins Struggle, But XRP Rises
The wider altcoin market is also feeling the pressure. Ethereum and Binance Coin have seen 2.4% corrections. However, XRP is bucking the trend, gaining 5.3% to reach $0.645. Meme coins like DOGE and SHIB, which surged last week, are now leading the decline.
The drop in the Nikkei 225 is being driven by a stronger Yen. Analyst Michael Wan from Mitsubishi UFJ Financial Group predicts that Shigeru Ishiba’s victory could push the Bank of Japan toward more aggressive interest rate hikes. While Ishiba has called for a more flexible monetary policy, uncertainty remains about his plans.
What’s Next: More Trouble or a Rally?
As the crypto market braces for more volatility with U.S. jobs data coming up, some traders remain hopeful for a strong Q4 rally. Some are even predicting Bitcoin could hit $100,000 by year-end.
With so much uncertainty in the market, now is the time for you to weigh in. Are you betting on a new bull run?
