The crypto market, led by bitcoin and altcoins, is going through a phase of turbulence. After a notable rise last week, the market took a sudden turn, plunging many investors into uncertainty. This decline does not appear to be a simple blip, but rather the result of multiple combined factors, ranging from geopolitical dynamics to movements in Asian markets.
The impact of Asian markets
In recent days, volatility in Asian markets has played a key role in the decline of Bitcoin and altcoins. The Nikkei 225, Japan's flagship index, tumbled almost 5%, a considerable drop that had a domino effect on digital assets.
Bitcoin, which had held above $66,000 recently, came under significant selling pressure, trading at $64,536, recording a decline of almost 2%.
One of the main reasons for this fall is rising concerns over the decisions of the Bank of Japan. The recent victory of Shigeru Ishiba, an influential political figure, has revived fears of a rise in interest rates in the archipelago.
Such a decision could encourage a stronger yen, reinforcing the sale of risky assets like Bitcoin.
At the same time, geopolitical tensions, notably the assassination of Hezbollah leader Hassan Nasrallah, are exacerbating global economic uncertainty, which is not without consequences on the crypto market.
Financial markets often move in response to broader dynamics. While some predicted a continued rise in Bitcoin, Asian markets showed how unpredictable the situation is.
Investors, both institutional and individual, must deal with this new data to adjust their strategies.
Altcoins swept up in the turmoil
The decline of Bitcoin brought in its wake a notable fall in altcoins. Ethereum, BNB, and even Dogecoin, all saw declines ranging from 2% to 5%.
Altcoins, already more volatile than Bitcoin, are often disproportionately affected during market corrections. This time was no exception. Ethereum, for example, was trading at $2,634, down from its previous peak.
However, it is not all doom and gloom for all altcoins. XRP, to everyone's surprise, managed to defy this downward trend by recording an increase of 5.3%, reaching $0.645. This upward movement, although modest, shows that certain cryptos are still managing to do well despite the overall market correction.
In this context, memecoins like Dogecoin and Shiba Inu were particularly affected. With declines between 5% and 8%, these cryptos popular with short-term traders show how sensitive their value is to sudden market swings.
As markets continue to shake, all eyes are on the upcoming release of U.S. unemployment data.
These figures, crucial to understanding the economic health of the country, could have a major impact on the future trends of Bitcoin and altcoins. A deterioration in the US job market could increase selling pressure, while signs of recovery could give a breath of hope to investors who hope to one day see bitcoin at $1.5 million.
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