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Bitcoin (BTC) is feeling the heat as its price slips nearly 2%, trading around $64,536. The drop follows a significant decline in Japan’s Nikkei 225 index, which fell by 4.6% amid concerns over potential interest rate hikes after Shigeru Ishiba’s recent electoral victory. The impact of this news rippled through the crypto market, pulling down top altcoins like Ethereum (ETH), BNB, and meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB), which experienced losses ranging from 5% to 8%.
What’s going on in the crypto market?
Selling Pressure Amid Geopolitical Tensions
Despite a solid 9% gain in September, BTC has encountered selling pressure as bulls struggled to maintain its price above the $65,000 mark. This downturn comes amid geopolitical tensions, including recent military actions in Israel that have contributed to market unease. In a recent analysis by Santiment, social sentiment around Bitcoin surged, with 1.8 bullish posts for every bearish one, suggesting that crowd expectations may not align with market movements. Historically, markets tend to move against prevailing sentiments, indicating that the anticipated next all-time high for Bitcoin might be further off than expected.
Analyst Predictions and Institutional Interest
Popular crypto analyst Ali Martinez commented on potential market movements, suggesting that BTC could retrace to around $60,000 before making a significant leap toward $78,000. Meanwhile, institutional interest appears to be returning, as indicated by recent inflows into spot Bitcoin ETFs, showing that buyers are capitalizing on the current price dips.
Altcoin Market Under Pressure
The broader altcoin market isn’t faring much better, with Ethereum and BNB facing 2.4% corrections. However, XRP has managed to defy the trend, gaining 5.3% to reach $0.645. As meme coins enjoyed a surge last week, they now face sharp corrections, with DOGE and SHIB leading the declines.
Against the backdrop, the Nikkei 225 Index’s slide is largely attributed to a strengthening Yen, with Michael Wan, an analyst at Mitsubishi UFJ Financial Group, predicting that Ishiba’s victory could lead to a more hawkish approach from the Bank of Japan. While Ishiba emphasized the need for accommodating monetary policy, uncertainties about his direction linger.
Hope for Q4 Rally
Looking ahead, the crypto market braces for potential volatility, especially with US Jobs data on the horizon. Many traders remain hopeful for a strong Q4 rally, with bullish targets for Bitcoin climbing as high as $100,000 by year-end.
What is your bet on crypto, will it overcome these short-term challenges?
