Japan raises interest rates + Federal Reserve changes leadership, Bitcoin directly breaks through support level📉
Bitcoin dropped last night to a shocking extent, falling directly below $86,000 this morning, getting closer to the yearly low😭 The culprit is the impactful news from the two major central banks!
The market is speculating that the Bank of Japan will raise interest rates by 25 basis points on Friday, which is a high-level operation not seen in nearly 30 years! Once the yen raises interest rates, global low-cost funds will tighten, and high-risk assets like Bitcoin will be the first to be sold off📉 After all, many people previously borrowed low-interest yen to buy coins, and now they need to close positions and repay debts, making it impossible to stop the downward trend.
Even more frustrating is the uncertainty surrounding the selection of the Federal Reserve Chair, as Trump wants to replace the dovish confidant, throwing policy direction into chaos. Originally, the interest rate cut should have been beneficial for the crypto space, but the fluctuating expectations have instead triggered panic, with 110,000 people liquidated within 24 hours, with liquidation amounts exceeding $270 million💸
Now BTC is fluctuating between $85,000 and $94,000, with poor liquidity and high volatility, fearing being trapped while trying to buy the dip, and cutting losses is also painful. The year-end market is exhausting, so everyone must reduce leverage and operate cautiously!
