The price of Bitcoin tumbled down today, managing to drop to the sub-$64k price level as global markets reacted to the surprise appointment of Shigeru Ishiba as the new Prime Minister of Japan. The move sent shockwaves through the crypto market, causing Bitcoin itself to dip around 3% as of this time’s writing.
Known for his more hawkish stance on monetary policy, Ishiba has sparked fears of potential tightening measures by the Bank of Japan (BOJ). Subsequently, this has led to a surge in the Japanese Yen and a 5% drop in the Nikkei stock average, which ended up impacting the overall crypto markets as a consequence.
One previous instance of the BOJ seemingly hinting at raising interest rates already showed to be a cause for concern when it comes to Bitcoin. This time around, the uncertainty surrounding Ishiba’s policies is said to have spooked investors – leading to a Bitcoin sell-off.
Of course, the current dip may not be caused by just the new Japanese PM being appointed. The recent price rally, which was fueled by the US Federal Reserve’s rate cut and China’s stimulus measures, managed to push crypto into overbought territory. In that case, it was only a matter of time for a correction to occur, and today’s news confirms it.
If you’re wondering what’s next for Bitcoin, you can try revisiting the long-term fundamentals according to the whitepaper and other top sources of information. As for now, the short-term outlook is definitely shaky and its price is still subject to market flucuations. Your best bet is to keep a cool head and stay tuned for further updates.