📰 Summary of the Japan–China Conflict and Its Impact on Crypto Assets
In recent days, tensions between Japan and China have escalated sharply. The situation heated up after Japanese Prime Minister Sanae Takaichi issued a statement that Japan could intervene if China took military action against Taiwan. China immediately reacted strongly and described the statement as a "surprising and incorrect" signal.
China's reaction was not only in the form of diplomatic condemnation but also economic actions, such as:
Issuing travel warnings to Japan,
Suspending certain social/economic activities,
Considering tightening imports.
This situation has raised concerns in the global market.
📉 Impact on Financial Markets
The conflict has caused:
The Japanese stock index (Nikkei 225) to fall significantly, especially in the tourism and retail sectors that heavily depend on Chinese tourists.
The yen to weaken significantly against the dollar and euro.
The global market to enter risk-off mode, where investors avoid high-risk assets.
This situation has made the Asian financial market unstable, triggering massive sell-offs.
💥 Impact on the Crypto Market
Crypto assets have also been pressured because:
Global investors are avoiding risky assets, including Bitcoin and altcoins.
Bitcoin briefly corrected and "erased" some of this year's gains due to increased global uncertainty.
Several altcoins like SUSHI dropped more than 13% in the last 7 days.
Crypto is highly sensitive to global sentiment; thus, when there is geopolitical tension, the crypto market usually also corrects.
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✅ Conclusion
The conflict between Japan and China is not just a political issue, but it has directly impacted the global financial market, including crypto assets. Geopolitical uncertainty causes investors to become fearful of taking risks, leading to a downward trend in the market.
In summary:
Political tension → global markets shaky
Yen weakens & Japanese stocks drop → negative economic signal
This negative sentiment spreads to crypto → prices of many coins correct
