BOJ Rate Hike Blamed for Bitcoin Price Plunge, Report
CryptoNewsTerminal Staff05 Aug, 2024
BOJ Rate Hike Blamed for Bitcoin Price Plunge, Report
The recent plunge in Bitcoin's price has been attributed to the Bank of Japan's (BOJ) decision to raise its benchmark interest rate, according to an analysis by cryptocurrency media outlet Blockchain. On September 5, Bitcoin's price fell to $49,000 before recovering some of its losses. Blockchain speculates that the BOJ's rate hike prompted traders to unwind their carry trade using the yen, leading to the sale of risk assets like Bitcoin to repay debt. Other factors contributing to the price drop, according to Blockchain, include a weaker-than-expected US non-farm payrolls figure for July, increased uncertainty around the US presidential election due to rising approval ratings for Vice President Kamala Harris, and a large-scale cryptocurrency exchange deposit by major market maker Jump Crypto.
